Alibaba beats on earnings as e-commerce remains core revenue driver

Alibaba beats on earnings as e-commerce remains core revenue driver

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Alibaba’s second quarter revenue surpasses estimates

E-Commerce giant Alibaba has reported a 56 percent revenue increase since the first quarter of this year, surpassing forecasts made by Wall Street. This growth is driven by the surge in numbers of Chinese consumers buying a wide range of products online.

Alibaba’s profits reached RMB 50.1 billion (US$7.51 billion) during the second quarter. 86 percent of this revenue came from its e-commerce services, up from 73 percent during the same period last year. While the increase in Alibaba’s stocks were driven mostly by its e-commerce services, expansion in cloud computing and entertainment ventures diversified its core business.

In the cloud business, revenue grew by 96 percent in the quarter to 2.4 billion yuan, with paying customers breaking the 1 million mark for the first time, up from 577,000 a year earlier.

Chief Executive Daniel Zhang also confirmed the company led a $1.1 billion investment in Southeast Asian retailer Tokopedia, adding to its expanding network of assets in the region. In June, Alibaba invested a further $1 billion in Singapore-based e-commerce platform Lazada Group. It has also targeted new merchants in Russia and the United States as part of a wider plan to boost revenues and attract new customers outside China.

First rumors considering Chinese giant entering Polish market spread already last year. So far only part of AliExpress was translated to Polish. Perhaps now, Alibaba will expand more surely on this market.

[source: http://next.gazeta.pl/next/7,151003,22247665,alibaba-wielka-niczym-chinski-smok-ale-rosnie-dalej-jak-na.html#BoxBizLink]

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