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China’s Alibaba warns of slowest revenue growth since debut

Nov 18 (Reuters) – China’s Alibaba Group Holding Ltd (9988.HK), forecast annual revenue to develop at its slowest tempo since its 2014 inventory market debut as second-quarter outcomes missed expectations attributable to slowing consumption, growing competitors and a regulatory crackdown.

U.S.-listed shares of Alibaba, which expects its fiscal yr 2022 revenue to develop by 20% to 23%, have been down 3% earlier than the opening bell on Thursday.

The firm final week recorded its slowest gross sales growth throughout its annual Singles’ Day, the world’s greatest on-line procuring fest. learn extra

Once a significant media occasion, the corporate downplayed its gross sales tallies and as an alternative highlighted its efforts to enhance social welfare and the setting.

China’s massive tech corporations have additionally been below strain because the nation’s regulators clamp down on highly effective gamers from Alibaba to ride-hailing big Didi Global Inc (DIDI.N), citing antimonopoly and safety causes.

The crackdowns have additionally damage Chinese gaming and social media big Tencent Holdings (0700.HK), which posted its slowest quarterly revenue growth since it went public in 2004. learn extra

Alibaba’s founder Jack Ma has been largely out of public view since criticising China’s regulatory system final yr.

Authorities compelled the suspension of the $37 billion preliminary public providing of Alibaba’s fintech affiliate Ant Group final November, and imposed a report $2.8 billion superb on Alibaba for anti-competitive enterprise practices in April.

The firm logged its first working loss as a public firm the identical quarter it confronted the penalty, and has misplaced a couple of third of its market worth thus far this yr.

For the reported quarter, the e-commerce juggernaut’s revenue growth rose 29% to 200.69 billion yuan ($31.44 billion), its slowest charge of growth in six quarters. Analysts on common had anticipated revenue of 204.93 billion yuan, in response to Refinitiv knowledge.

Adjusted web revenue hit 28.52 billion yuan, down 39% year-on-year. The firm mentioned earlier this yr it intends to take a position closely in areas comparable to Taobao Deals, an e-commerce service focusing on lower-tier cities, and offline retail initiatives.

Revenue at Alibaba’s China commerce retail enterprise, its major e-commerce unit, hit 126.83 billion yuan, a 33% year-on-year improve.

Revenue from cloud computing reached 20 billion yuan, additionally up a 3rd year-on-year.

On an adjusted foundation, it earned 11.20 yuan per share, under estimates for 12.36 yuan.

Ant Group recorded a quarterly revenue of about 19.7 billion yuan for the quarter ended June. Alibaba information its revenue from Ant one quarter in arrears.

($1 = 6.3838 Chinese yuan renminbi)

Reporting by Subrat Patnaik in Bengaluru and Josh Horwitz in Shanghai; Editing by Arun Koyyur, Kirsten Donovan

The logo of Alibaba Group is lit up at its office building in Beijing, China August 9, 2021. REUTERS/Tingshu Wang/File Photo

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