Alibaba revenue soars ahead of IPO
Alibaba Group Holding Ltd’s [IPO-BABA.N] revenue accelerated in the second quarter on strong gains in its mobile business, providing investors with what may be the final glimpse of the Chinese e-commerce company’s financials before its expected landmark market debut.
Revenue in the second quarter increased 46 percent year-on-year to $2.54 billion, a faster pace than the 38.7 percent revenue growth that Alibaba posted in the first quarter.
Net income attributable to Alibaba’s ordinary shareholders nearly tripled to $1.99 billion, or 84 cents per share, in the quarter.
“The main positive I take away is that (it) seems the mobile monetization is on a very strong upwards trajectory,” Atlantic Equities analyst James Cordwell told Reuters.
“The results are very positive overall for the forthcoming IPO and I think you can see valuations to head north of $200 billion as we go through the IPO process,” Cordwell said.
“Our current focus is on increasing mobile (gross merchandise volume) and user engagement,” Alibaba said in a U.S. regulatory filing on Wednesday.
Though Alibaba’s growth has slowed sharply over the past two years as the Chinese leviathan accumulates scale, its revenue growth still outpaces Amazon’s.
Source: Reuters
