News short: Alibaba CFO says cloud division to be profitable within FY2021

Platform News: Alibaba online marketplace

Chinese platform giant Alibaba’s cloud unit hopes to be profitable inside 2021, a senior executive said early on Wednesday.

Maggie Wu, chief financial officer of Alibaba, made the comments at an livestreamed investor afternoon event.

The company, a dominant player in China’s cloud marketplace, is fending off challenge from national rival Tencent which is also hoping to capture cloud business opportunities.

Alibaba has said it would invest 200 billion yuan (approximately $29.36 billion) in its cloud infrastructure within three years.

In the June quarter, Alibaba’s cloud computing earnings grew 59 percent from a year earlier to 12,345 million yuan on higher revenue contribution from the public cloud and hybrid cloud businesses.

Cainiao, Alibaba’s cooling system unit, will likely see operating cash flow turn positive in financial year 2021, Wu continued.

The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Pei Li and Josh Horwitz. Editing by Himani Sarkar.

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