Alibaba's single-quarter revenue hits US$17.46 billion

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Alibaba, China's biggest e-commerce site, was up more than 3% early Tuesday after posting better-than-expected profits for the third quarter.

Last quarter, the revenue of Alibaba, the Chinese e-commerce giant, grew at its slowest pace in a period of three years.

According to Alibaba's quarterly sales results, the Chinese business has outperformed its global technology peers thanks to its significant growth in active users.

The positive result by Alibaba which is the first of China's internet giants to report its earnings may bring a much-needed boost to China's slowing economy.

Net income rose by 33%, to 30.96 billion yuan (€4 billion), however, beating estimates and sending Alibaba's stock up by 2% in pre-market trade.

Revenue for its cloud business rose 84 per cent year-on-year to 6.6bn yuan, while its entertainment and media business rose 20 per cent to 6.5bn yuan.

Profitability got a one-time boost from a non-cash gain of 22 billion yuan from the revaluation of Alibaba's previously held equity interest in food and lifestyle services firm Koubei, partly offset by impairment charges of 7.06 billion yuan.

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Alibaba did not issue any guidance for the fiscal fourth quarter.

"Our growth is also driven by the power of Alibaba's cloud and data technology that help expedite the digital transformation of millions of enterprises", Zhang said.

In 2018, even though Alibaba netted a record $30 billion from the Singles' Day, annual growth dropped to the weakest rate in the event's 10-year history as a slowing Chinese economy and trade tensions chilled sentiment.

Alibaba's earnings were in the spotlight particularly after sales in its 24-hour "Singles Day" shopping extravaganza in November grew 27 percent, down from a 39 percent increase the previous year, in what was seen as a symptom of China's economic slowdown.

China's economic growth in 2018 slowed to its weakest in nearly 30 years, with growth expected to decline even further this year.

"As Chinese consumers upgrade their lifestyles, they will purchase higher-quality products as well as more services and entertainment", CLSA said, adding that Alibaba was well-placed to profit from this.

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