Alibaba reports lower revenue rise in Q1

Thursday, 13 August 2015

REPORT Alibaba Group, for the quarter ended June 30, 2015 reported that GMV transacted on China retail marketplaces was 673 billion Chinese yuan (109 billion dollars), an increase of 34 percent compared to the same quarter of 2014. GMV transacted on Taobao Marketplace in the quarter increased 25 percent and GMV transacted on Tmall increased 55 percent compared to the same quarter of 2014. The growth in total GMV transactions was primarily driven by an increase in the number of active buyers.

Revenue for the quarter was 20,245 million Chinese yuan (3,265 million dollars), an increase of 28 percent, on the back of continued rapid growth of China commerce retail business. However, this rise was lower than the 34 percent year-over-year GMV growth.

“We had a strong quarter and we continued to build the foundations for future growth. We focused our efforts on building healthy GMV growth, delivering the best consumer experience, and improving the quality and sustainability of merchants doing business on our marketplaces,” said Daniel Zhang, Chief Executive Officer of Alibaba Group, adding, “We are excited about our top strategic priorities, including internationalization, winning in mobile, expanding our ecosystem from cities to villages, and investing in core technologies that will propel our cloud computing business.”

Mobile GMV in the quarter increased 125 percent compared to the same quarter of 2014. Mobile GMV accounted for 55 percent of total GMV transacted on China retail marketplaces in this quarter, compared to 51 percent in the quarter ended March 31, 2015 and 33 percent in the quarter ended June 30, 2014.

Revenue from China commerce retail business was 78 percent of total revenue, an increase of 24 percent. The increase was mainly driven by the growth in online marketing services revenue and commission revenue. Commission revenue as a percentage of China commerce retail revenue remained stable at 32 percent in the quarter. Excluding the effect of the online lottery business suspended in late February 2015 from historical periods, revenue from China commerce retail business would have increased by 29 percent.

Mobile revenue from the China commerce retail business exceeded 50 percent of total China commerce retail revenue for the first time in the quarter ended June 30, 2015. It increased by 225 percent in the quarter. Revenue from our China commerce wholesale business in the quarter increased 41 percent compared to the same quarter of 2014. Revenue from our international commerce retail business increased 40 percent. Revenue from international commerce wholesale business increased 12 percent.

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