THE WHAT? Alibaba has reported a 40 percent rise in revenue for the second quarter of fiscal 2019, despite China’s slowing economy, according to a report published by Bloomberg.
THE DETAILS Revenue hit RMB119,017 million as active user numbers surged by 19 million over the three months ended September 30, 2019.
“We delivered a strong quarter with revenue growth of 40 percent and adjusted EBITDA up 39 percent year-over-year,” said Maggie Wu, Chief Financial Officer of Alibaba Group. “With sustained consumer engagement and spending across the Alibaba Economy, we have continued our revenue and profit growth, as well as strong free cash flow that enable us to invest in long-term growth.”
“Alibaba Group celebrated its 20th anniversary in September, marking an important milestone on our 102-year journey to make it easy to do business anywhere,” said Daniel Zhang, Executive Chairman and CEO of Alibaba Group. “Our digital economy continues to thrive and prosper. We aim to serve over one billion annual active consumers and help our merchants achieve over RMB10 trillion in annual gross merchandise volume by end of fiscal 2024. We will continue to invest in the user experience and innovative technology to create new value for consumers, as well as the millions of enterprises undergoing digital transformation in the new digital economy.”
THE WHY? The e-commerce behemoth attributed its success to the rise of livestreaming via its Taobao platform. Some 50 percent of merchants who sell via Tmall have now leveraged livestreaming to engage with their customers, says Alibaba.
It’s driving growth by reaching more remote consumers as well as growing its international offer. With its popular shopping festival, Singles’ Day, yet to come, it promises to be a rosy year.