Alibaba Group Holding Ltd. recorded a notable second-quarter profit, especially due to its progress in making money from sales made on cellphones and mobile devices, says The Wall Street Journal.
The Chinese e-commerce company said profit rose to $3.57 billion, or $1.40 a share, in its quarter ended Sept. 30. Alibaba Health Information Technology Ltd. is the main cause for Alibaba revenue, and without it, the company’s profit would have been shy of the $762 million in net profit projected by analysts surveyed by S&P Capital IQ.
But some of the Alibaba revenue came from a market the Chinese wouldn’t have expected: mobile transactions, with a 32% rise in revenue over the year-earlier. “It beat expectations on mobile, so it really bodes well for the future of the company. Because increasingly customers use mobile to make transactions, that is really the key here.”, said Henry Guo, who covers Chinese Internet companies at Summit Research, according to The Wall Street Journal. Its shares increased 8.3% to $82.70 in premarket trading in New York.
With China’s economy expected to slowdown, Alibaba revenue has been watched closely over the last few months. Just last month Alibaba investor-relations chief Jane Penner stated that the company sees “ negative impact on the magnitude of the spending” by Chinese consumers on their online platforms. But with profit of $3.49 billion in the first quarter, it looks like Alibaba beat all odds, as analysts were expecting $3.39 billion in revenue.
According to the same source, Alibaba said its gross merchandise volume, a measure of sales on its platforms, grew 28% from the prior year. Mobile revenue more than doubled to $1.66 billion.
Alibaba Health and Alibaba mobile transactions are the ones to follow when it comes to the grandiose e-commerce company.