China's Alibaba misses first-quarter revenue estimates


Aug 3 - China's Alibaba Group Holding Ltd missed analyst estimates for first-quarter revenue on Tuesday, as its e-commerce business was hurt by rising competition from smaller players such as JD.Com Inc and Pinduoduo Inc.

Alibaba's results mirror those of an e-commerce giant Inc in the United States, as the easing of pandemic-related restrictions has led to more consumers visiting physical stores instead of ordering online.

Core commerce revenue for Alibaba rose about 35% in the quarter to 180.24 billion yuan, compared with estimates of 184.23 billion Yuan on average In the fourth quarter, the unit's revenue soared more than 70%.

In the first quarter of the first quarter, revenue rose about 34% to 205.74 billion yuan, below estimates for 209.39 billion yuan according to IBES data from Refinitiv.

Net income attributable to shareholders fell to 45.14 billion yuan, compared with 47.59 billion yuan a year earlier.

On an adjusted basis, the company earned 16.60 yuan per share, above costs estimated for 14.43 yuan.

Alibaba Group, the fintech affiliate of Ant Group, reported a profit of about 13.48 billion yuan in the month ended March according to the Chinese e-commerce giant's filing.

Alibaba, which owns about a third of the Ant Group, posted a profit of 4.49 billion yuan for the quarter ended June 30 from its investments in the financial conglomerate.

The results come amid an ongoing Chinese regulatory crackdown on industry, during which Alibaba has become one of the main targets.

Late last year, regulators called for a planned $37 billion IPO by the Ant Group in Shanghai and subsequently stopped the restructuring of the financial unit.

In April China's anti-monopoly regulator fined Alibaba $2.75 billion for engaging in anti-competitive practices.

During an earnings call with investors, Alibaba CEO Daniel Zhang told the company that it would continue to monitor the impact of ongoing regulatory changes on the Company's business operation.

He cited a recent regulatory crackdown on community marketplace platforms where sellers can offer items below the market price as one example of a sector the company is monitoring, in addition to Data Security Law and an investigation by the Ministry of Industry and Information Technology into open links between rival platforms.

I am in the process of evaluating the necessary regulatory requirements, evaluating the potential impacts on our relevant businesses and we will respond positive with actions, Zhang said.