Alibaba Q2 profit declined 66 percent from last year
Staff Writer |
Alibaba Group Holding Limited reported a profit for the second quarter ended September 30, 2016 that declined 66 percent from last year.
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The prior year result included a non-cash revaluation gain of RMB 18.60 billion, or RMB 7.26 per share, arising from revaluation of previously held equity interest in Alibaba Health. But Quarterly revenue increased 55% from the previous year.
Net income attributable to ordinary shareholders was RMB 7.62 billion or $1.14 billion, a decrease of 66% from the prior year's RMB 22.75 billion.
The prior year result included a non-cash revaluation gain of RMB18.60 billion arising from revaluation of previously held equity interest in Alibaba Health. Quarterly earnings per share was RMB2.97 pr $0.45, a decrease of 67% compared to RMB8.87 last year.
Excluding the non-cash revaluation gain, share-based compensation and certain other items, non-GAAP net income in the quarter ended September 30, 2016 was RMB12.95 billion or $1.94 billion, an increase of 41% compared to RMB9.20 billion in the same quarter of 2015.
Non-GAAP earnings per grew 46% to RMB5.26 or $0.79 from RMB3.61 in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.69 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter was RMB 34.29 billion or $5.14 billion, an increase of 55% from RMB 22.17 billion in the same quarter of 2015. Wall Street expected revenues of $5.03 billion for the quarter.
The increase was mainly driven by the continued revenue growth of our China commerce retail business and the consolidation of newly acquired businesses- mainly Youku Tudou and Lazada, which were consolidated for this full quarter.
Revenue from core commerce increased 41% year-over-year to RMB 28.49 billion or $4.273 billion. Revenue from cloud computing increased 130% year-over-year to RMB1.49 billion or $224 million.
Revenue from digital media and entertainment increased 302% year-over-year to RMB 3.61 billion or $541 million. ■