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Alibaba Revenue Beats Despite Flat Growth Due to COVID Lockdown

Reuters2022-08-04

Aug 4 (Reuters) - China's Alibaba Group Holding Ltd, on Thursday beat market expectations for revenue in the quarter ending late June, even though growth was flat for the first time ever due to the impact of COVID-19 lockdown.

The e-commerce giant's U.S.- listed shares rose 5% in trading before the bell.

China locked down dozens of cities between April and May as the infectious Omicron variant raged, with cities such as its largest and most cosmopolitan hub of Shanghai facing the harshest curbs that paralyzed intra and inter-city delivery.

In Shanghai, for instance, households for nearly the whole of April were unable to place orders from Taobao or Ele.me, Alibaba's e-commerce and food delivery sites, and instead relied on the government and roundabout channels for food and supplies. The delivery situation only slightly eased in May.

The lockdown lifted on June 1, just in time for China's annual June 18 shopping festival. However, the festival did little to boost overall business in the quarter.

"Following a relatively slow April and May, we saw signs of recovery across our businesses in June. Despite near-term challenges, Taobao and Tmall continue to achieve high consumer retention, especially among consumers with higher spending power," the company said.

Revenue stood at 205.56 billion yuan ($30.43 billion)in the quarter, compared to analysts' average expectation of 203.19 billion yuan, according to Refinitiv data.

Net income attributable to ordinary shareholders for the quarter ended June 30 was 22.74 billion yuan, compared to 45.14 billion yuan, a year earlier.

($1 = 6.7557 Chinese yuan renminbi)

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Comment64

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    ·2022-08-07
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    ·2022-08-05
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    ·2022-08-05
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  • SPOT_ON
    ·2022-08-05
    Any rocket back above $200 ?
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  • robot1234
    ·2022-08-05
    Alibaba reported fiscal first-quarter earnings on Thursday that beat expectations, sending shares higher. In the quarter, Alibaba faced a number of headwinds including a resurgence of Covid in China that led to major cities being locked down and a sluggish Chinese economy in the second quarter. Alibaba reported fiscal first-quarter earnings on Thursday that beat expectations, sending its stock higher. The Chinese e-commerce giant’s U.S.-listed shares jumped as much as 6% and closed the session 1.8% higher. Despite Alibaba beating estimates, it is the first time the company posted flat growth in its history. In the quarter, Alibaba faced a number of headwinds including a resurgence of Covid in China that led to major cities, such as the financial metropolis of Shanghai, being locked down. T
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  • Tanyl
    ·2022-08-04
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    ·2022-08-04
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