Media Losses Expand as Alibaba Revenues Leap 60% in First Quarter

Chinese e-commerce giant Alibaba reported revenues of $12.2 billion in the three months to end of June, a year-on-year leap of 61%. Group profits were flat, and losses in the media and entertainment division grew.

The three months, which equate to the first quarter of Alibaba’s financial year, delivered group-wide net profits of $1.16 billion, or $3.04 billion on a non-GAAP basis.

Alibaba’s share price has been battered by fears of the fallout of the U.S.-China trade war. The NYSE-traded ADRs stood at $177.85 at Wednesday’s trading close, a drop of 9.9% over the past 12 months, at a time when the Dow Jones Index has risen by 3.7% and the tech heavy NASDAQ composite index has risen by 6.3%.

Initial reaction to the results announcement lifted the ADR price by 5.4% to $183.12 in pre-market trading. That was despite news that the U.S. will put tariffs on a further $16 billion Chinese goods from midnight.

Alibaba’s digital media and entertainment segment recorded first quarter revenues of $872 million (RMB5.98 billion) and losses of $6326 million (RMB4.29 billion). That compared with revenues of RMB4.08 billion and losses of RMB3.39 billion in the same three months last year.

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