Alibaba Revenue Up 61% Despite US Tension
Alibaba has post a 61% [YoY] jump in quarterly net revenue to 80.9 billion yuan (US$12.2 billion), driven by entertainment and cloud computing, plus e-commerce customer growth.
For the three months to June 30th, retail marketplace customers increased 24 million [YoY] to 576 million.
Mobile monthly active users reached 634 million – a 17 million YoY lift.
During the quarter, Alibaba’s ‘core commerce’ business post a 61% [YoY] increase in revenue to US$10.4 billion.
Its cloud computing division generated US$710 million – a whopping 93% YoY jump.
‘Digital media and entertainment’ revenue climbed 46% YoY to US$903 million, with ‘innovation initiatives and others’ notching US$160 million – a 46% and 64% YoY increase respectively.
Digital growth comes as Alibaba continues to pursue its strategy of converting e-commerce customers into media consumers. New innovations include its popular AI voice assistant ‘Tmall Genie.’
Average daily subscribers for Alibaba’s YouKu has boomed 200% YoY, after landing FIFA World Cup streaming rights in China, coupled with new premium content.
Vice Chairman, Joseph Tsai, hopes Alibaba’s position will help alleviate trade relations between China and America, asserting “nobody wins in a trade war”.
“Alibaba’s business is focused on capturing the Chinese domestic consumption opportunity and less reliant on Chinese exports,” he adds.