Alibaba Sees Small Revenue Growth, Increased Buybacks

Estimated read time 1 min read

During the October–December period, Alibaba Group Holding Ltd. had a 5% YoY growth in sales, but a 77% YoY decline in net profits. Alibaba announced that, as a sign of its confidence in its cash flow and business prospects, it has approved an additional increase in its share repurchase programme of US$25 billion through the end of March 2027. With this increase, the e-commerce company’s available funds under the plan for the next three fiscal years would total US$35.3 billion. Developing public cloud solutions and maintaining growing momentum in global commerce are the company’s major priorities, along with reigniting growth in its core businesses of cloud computing and e-commerce.

Cloud computing revenue climbed by 3% YoY to 28.07 billion yuan, while revenue from the Taobao and Tmall platforms increased by 2% YoY to 129.07 billion yuan. The International Digital Commerce Group of Alibaba reported 28.52 billion yuan in revenue, a 44% YoY increase. The company’s net income attributable to common shareholders saw a 77% YoY decline to 10.7 billion yuan. Meanwhile plans to spin off businesses like Cainiao and Freshippo are on hold because of poor market conditions that do not accurately reflect the business value, Alibaba has declared that it still intends to move forward with these ambitions.

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E.F Team https://eastern.finance

Our team at Eastern Finance is made up of young and knowledgeable professionals who are here to provide you with business news from an eastern perspective.

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