Alibaba Group has released its Q2 results for the three months ending in September. Revenue increased 54% to CNY85.1bn (US$12.3bn) for the same comparable period last year.
Strong momentum into Singles' Day
Alibaba has posted an impressive set of Q2 results. Net income attributable to shareholders increased 13% to CNY20bn (US$2.9bn) YoY. While the number of annual active customers increased by 25m to reach 601m. Ahead of the retailer's 10th annual shopping event held on 11.11, the retailer has recorded significant growth across the business.
- Revenue from core commerce increased 56% YoY to CNY72.4bn (US$10,553m)
- Revenue from cloud computing increased 90% YoY to CNY5.6bn (US$825m)
- Revenue from digital media and entertainment increased 24% YoY t to CNY5.9bn (US$865m)
- Revenue from innovation initiatives and others increased 20% YoY toto CNY1.1bn (US$155m)
Alibaba has revised its revenue forecast for the fiscal year down by 4-6% to a range of CNY375bn (US$54.4bn) and CNY383bn (US$55.6bn). It expects total revenue to grow between 54-56%, remaining in line with growth seen in Q2.
The retailer's New Retail strategy will continue to play an important role, especially in bricks-and-mortar supermarkets Hema Fresh. Alibaba first introduced these stores one a half years ago. For the September quarter, online sales accounted for 60% turnover. The retailer ended Q2 with 77 Hema Fresh stores, and further expansion has been outlined.
Counting down to 11.11
Read more about Alibaba's Singles' Day here.