Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Technology

Alibaba Reports First Operating Loss As A Public Company

China's top e-commerce platform Alibaba Group Holding Ltd on Thursday reported its first quarterly operating loss since going public in 2014 due to a record anti-monopoly fine.

Its US-listed shares fell more than 3% in volatile premarket trading, even as the company forecast 2022 revenue above market expectations, betting that the broader pandemic-driven shift to online shopping will remain resilient.

But the strong outlook was overshadowed by a regulatory crackdown that resulted in the suspension of a $37 billion IPO of its affiliate Ant Group and a $2.8 billion fine for anti-competitive business practices.

The fine by China's markets regulator in April was the largest-ever of its kind.

Forecast

Alibaba forecast annual revenue to be 930 billion yuan ($144.12 billion) for the fiscal year ended March 2022, above analysts' average estimate of 928.25 billion yuan.

It posted a net loss attributable to ordinary shareholders of 5.48 billion yuan, or 1.99 per American depository share (ADS), mainly due to the anti-monopoly fine.

Excluding items, Alibaba earned 10.32 yuan per ADS, below expectation of 11.11 yuan.

Quarterly Report

Core commerce revenue rose 72% to 161.37 billion yuan in the quarter, powered by the company's China retail marketplaces and ongoing consumer adoption of e-commerce in the wake of the pandemic.

Revenue rose to 187.4 billion yuan ($29.03 billion) in the three months ended 31 March, higher than 180.41 billion yuan forecast by 30 analysts compiled by Refinitiv.

Alibaba's US listed shares have fallen more than 30% since hitting a record high in late October when its founder Jack Ma delivered a speech in Shanghai criticising China's financial regulators.

News by Reuters, edited by ESM. For more Technology news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days