Alibaba reports “signs of recovery” as it posts stable results for the last quarter due to Shanghai’s lockdown and the sluggish economy.
The Chinese e-commerce giant reported revenue of 205.55 billion RMB ($30.68 billion) and net profit of 22.73 billion RMB ($3.3 billion) for the quarter ended June 30, 2022. This is the first time the company has shown stable revenue growth.
The results beat analysts’ expectations, which had been forecasting declines, and led to gains in the stock market, as shares jumped 2%.
Chinese e-commerce giant Alibaba reports flat first quarter but signals signs of recovery
Alibaba’s stable results can largely be attributed to lower revenue at its largest business division, the China business division, which fell 1% year-on-year due to the Covid resurgence. -19 in China and Shanghai shutdowns.
Alibaba’s Digital Media and Entertainment division, which includes Youku – dubbed China’s YouTube – and Alibaba Pictures, also reported lower revenue, falling 10% year-on-year to RMB 7.2 billion ($1 billion). dollars).
However, Youku’s average daily paid subscriber base grew 15% year-on-year for the quarter, thanks to the platform’s investment in quality content and a VIP membership program.
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Daniel Zhang, CEO of Alibaba, said: “After a relatively slow April and May, we saw signs of recovery across our businesses in June. We are confident in our growth opportunities ahead. long term given our high quality consumer base and the resilience of our diverse business model to meet the different demands of our customers.