Alibaba revenues jump 54% to CNY 85.1 bln in fall quarter amid some caution ahead

Alibaba said revenues jumped 54 percent from the year before to CNY 85.148 billion (USD 12.398 billion) in the quarter to end September, with revenues rising 90 percent for cloud computing, 24 percent for digital media and entertainment and 20 percent for innovation initiatives. The operating profit fell 19 percent to CNY 13.501 billion, pulled down by the consolidation of Ele.me and Cainiao networks, investments in digital media and entertainment and elsewhere, and an increase in expenses. The adjusted EBITDA was up 7 percent to CNY 26.710 billion. Finally, the net profit attributable to shareholders lifted 13 percent to CNY 20.033 billion. 

The company intends to continue investing into long term growth abroad, with international revenues lifting 55 percent to CNY 4.464 billion. Alibaba noted that it partnered in September with Russian Direct Investment Fund (RDIF), Megafon and  Mail.Ru Group to integrate Russia’s key consumer internet and e-commerce platforms and launch a leading social commerce joint venture for Russia and CIS states. 

Online video platform Youku recorded a 100 percent year-on-year growth in daily average subscribers. Amap app and location based tech platform Amap (formerly AutoNavi) set a record high on 1 October, the first day of the week-long National Holiday in China, by reachign over 100 million daily active users. 

Looking ahead, Alibaba is guiding for fiscal year 2019 revenues of CNY 375-383 billion, lower than previous expectations, according to market watchers.