Alibaba revenues rise 54 percent in third quarter

Published 04.11.2014 18:48
Alibaba revenues rise 54 percent in third quarter

Chinese internet giant Alibaba on Tuesday reported record revenue growth with third-quarter sales increasing 54 per cent year-on-year to 2.7 billion dollars as it released its first earnings report since its September initial public offering.

The figure exceeded analysts' expectations, prompting Alibaba shares to jump 3 per cent in pre-market trading.

The shares then slipped temporarily at the news that third-quarter profits stood at 494 million dollars, a 38-per-cent dip from the same quarter in 2013.

The company blamed the drop on special costs connected to its recent stock market flotation as well as payouts on a company profit-sharing scheme.

Despite the drop, chief executive Jonathan Lu expressed satisfaction with the results. "We delivered a strong quarter with significant growth across our key operating metrics," he said.

The company's management refused to make prognoses about future developments with chief financial officer Maggie Wei Wu telling analysts in a teleconference that it was the company's philosophy not to speculate. She would only say that the company would be concentrating on long-term growth.

Analysts, however, showed keen interest in Alibaba's mobile phone revenues. Considered an indicator of future prospects, mobile phone revenues for the company rose 1,020 per cent to 606 million dollars.

Alibaba in September broke the US record for the most capital raised in an initial public offering - 25.03 billion dollars, beating the previous record by the Agricultural Bank of China, which made 22.1 billion dollars in 2010.

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