Alibaba released its first earnings report since becoming a public company and announced strong growth.Alibaba floated on the New York stock exchange in September in the largest IPO in history. Its net profits for the quarter to September declined by 39% to reach $494m, which equates to 20c per share.
Aside from the share-based compensation it handed out to staff during its initial public offering, the group continues to show strong growth. Aside from the share costs, its profits increased by 16%, compared to the same period in the previous year. Revenue for the quarter increased by 54% to reach $2.74bn.
This astounding performance comes as the economy in China seems to be slowing down. The country is expected to record its weakest annual growth since 1990, during this year.
Alibaba, the operator of Tmall and Taobao marketplaces, accounts for around 80% of China’s total online transactions. Taobao, the larger of its concerns, hosts millions of small businesses offering services and goods. Tmall is a global brand retailer, including Nike, Gap and Apple.
During the quarter to September, the two websites achieved a combined $90.5bn in sales, which is an increase of 49% compared to the previous year. Mobile transactions soared over the same quarter and accounted for around 35.8% of the gross transactions on Tmall and Taobao. This is more than double the previous year when it was at 14.5&. For the 12 months ending September, Alibaba has made mobile sales of $95bn.
Alibaba’s mobile platforms saw an increase in active users on its mobile platforms from 188m in June to 217m in September.
The group’s shares were sold at $68 during September’s IPS. On Tuesday, it showed an increase of $103 per share prior to noon ET.
Cynthia Meng, a Jefferies analyst, recently stated in a note to investors that they estimate Alibaba will be able to count half of the 1.3bn people in China as customers over the next 10 years, which is an increase from the quarter it is at now.