Alibaba reported 9 percent year-over-year revenue growth to reach 224.79 billion renminbi, or $4.6 billion, for the third quarter, which falls short of Bloomberg analysts’ estimate of 272 billion renminbi.
Net income at the Chinese tech giant reached 26.69 billion renminbi, or $3.65 billion, in the three months ended September 30, reversing a net loss of 22.46 billion renminbi, or $3.1 billion, in the same quarter, due to an increase in the value of the company’s equity investments.
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Revenue at its core Taobao and Tmall Group increased 4 percent to 97.65 billion renminbi, or $13.38 billion, during the quarter.
Despite a “modest decline in online GMV,” its e-commerce unit’s “ongoing efforts to attract new merchants, enhance price competitiveness, and enrich content offerings” helped the unit achieve “rapid growth in daily active users” and organic users during the September quarter and Singles’ Day, Trudy Dai, chief executive officer of Taobao and Tmall Group, said during the earnings call.
Revenue at Alibaba Internation Digital Commerce Group, which includes Lazada, Trendyol, Miravia, and AliExpress’ Choice, increased 47 percent year-over-year to reach 46.63 billion renminbi, or $6.39 billion.
Alibaba revealed plans to shelve its Cloud Intelligence Group spinoff plan due to uncertainties related to the “recent expansion of U.S. restrictions on export of advanced computing chips,” the company said in a statement.
“We believe that a full spinoff of Cloud Intelligence Group may not achieve the intended effect of shareholder value enhancement,” the company said.
“Instead, we will focus on developing a sustainable growth model based on emerging AI-driven demand for networked and highly scaled cloud computing services,” Joseph C. Tsai, who succeeded Daniel Zhang in September as company chairman, said during the earnings call.
Alibaba’s shares tumbled around 10 percent after the announcement.
The company also made updates to its Cainiao and Freshipppo spinoff plans. Cainiao, its logistics unit, has filed for an IPO in Hong Kong, but IPO plans for Freshippo, its supermarket unit, have been put on hold.
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