Alibaba – the China-based e-commerce giant is profiting from the increase in purchase of goods from clothing to food to luxury items from its online retailing site. The Chinese e-commerce giant, which was driven by growth in online sales, beat the estimates of analyst with a 56% rise in first-quarter revenue.
Online Sales hike up growth in Q1 of Alibaba’s revenue
Online Sales make most of the business of the China-based online retailing firm. Alibaba, which is one of the most valuable companies of Asia, is benefiting from more and more Chinese customers buying an increasing proportion of everything, according to Thursday results.
The stock of the online retailing site is up by over 81% this year, which is lifted by strong growth in its entertainment and cloud computing units and by steady increase in revenue for its commerce business. The revenue of the online retailer rose to 50.1 billion Yuan or $7.51 billion for the quarter ending in June 30. According to Thomson Reuters I/B/E/S, analysts, however, estimated the revenue of the e-commerce company to be 47.7 billion Yuan.
In a statement, chief executive Daniel Zhang said, “Our technology is driving significant growth across our business and strengthening our position beyond core commerce.” Revenue from the core e-commerce of Alibaba made up 86% of total revenue in the three months to June 30. This is up from 73% in the same period a year before. Revenue hiked up 96% in the quarter to 2.4 billion Yuan in the cloud business.
Alibaba cloud and entertainment business see a rise in growth
The cloud business of the online retailer boosted its total worldwide data centers to 17 during the first three months of the year, with the addition of two centers in Indonesia and India. Revenue in the entertainment business of the online retailer grew by 30% to 4 billion Yuan.
The net income attributable to the shareholders of the company almost doubled to $2.17 billion or 83 cents a share. Shares of the China-based e-commerce companies, including JD.com and Alibaba.com, have done a lot better in the market this year as well, with positive revenue growth around overseas expansion developments and June sales events. The Chinese e-commerce giant raised its expectations for full year revenue growth to 45-49% in June.