Alibaba Group beat third quarterly revenue estimates on Thursday, driven by e-commerce expansion after China arose from coronavirus lockdowns, and said it was assessing the suspension of its affiliate Ant Group’s record.
China’s surprise suspension of Ant Group’s projected $37 billion Shanghai initial public offering (IPO) was viewed by some investors and analysts as an effort by Beijing to reduce creator Jack Ma and his financial solutions empire down to size.
Alibaba CEO Daniel Zhang said during an earnings call that included Alibaba is “actively evaluating” the impact of this Ant Group IPO’s suspension on its own enterprise and will “take appropriate measures accordingly”.
Ant Group said individually it would decide whether to restart its IPO after fully reviewing and evaluating relevant steps.
Alibaba’s results also coincided with markets awaiting the results of this US presidential election outcomes, with Democrat Joe Biden edging nearer to success.
Under Donald Trump, the world’s best two economies have clashed over commerce, forcing a few Chinese businesses to put off US IPOs and list on exchanges close to home.
Revenue at Alibaba’s cloud business, a focus area for the firm, jumped 60% to 14.9 billion yuan, while earnings from its core e-commerce business rose 29 percent to 130.92 billion yuan in the reported quarter.
Net income fell 63% to 26.52 billion yuan, as Alibaba had booked a one-off profit last year in the 33% stake in Ant Group.
Revenue rose 30 percent to 155.06 billion yuan from the quarter ended Sept. 30, compared to estimates of 154.74 billion yuan, according to IBES data from Refinitiv.
Alibaba’s US-listed stocks, that have gained about 39 percent this season, fell nearly 4% in trading before the bell.
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Munsif Vengattil and Josh Horwitz. Editing by Shinjini Ganguli and Alexander Smith.
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