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Alibaba
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Alibaba increases share buy-back by US$25 billion as profit and revenue miss estimates

  • The Hangzhou-based firm’s net income attributable to ordinary share holders last quarter fell 69 per cent year on year to 14.4 billion yuan
  • Revenue rose 5 per cent to 260.35 billion yuan, missing estimates

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Alibaba Group Holding is facing increased competition from domestic rivals JD.com, Pinduoduo and Douyin. Photo: Shutterstock
Che Panin Beijing
Chinese e-commerce giant Alibaba Group Holding reported lower-than-expected financial results in the December quarter, as the Hangzhou-based company grappled with challenging economic conditions and growing competition from new entrants in the online shopping sector.
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Net income attributable to ordinary share holders came in at 14.4 billion yuan (US$2.01 billion) in the three months ended December 31, down 69 per cent year on year, the company announced on Wednesday after the close of trading in Hong Kong.

Under non-generally accepted accounting principles (GAAP), Alibaba’s net income dropped 4 per cent year-on-year to 47.95 billion yuan in the December quarter.

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Revenue rose 5 per cent to 260.35 billion yuan in the quarter, missing the consensus analysts’ estimate of 261.25 billion yuan, and slower than the 9 per cent growth seen in the September quarter. Alibaba owns the South China Morning Post.

Alibaba said it had approved an increase of US$25 billion in its share repurchase programme through the end of March 2027. Following this increase, the e-commerce company will have US$35.3 billion available under the scheme through the next three financial years.

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