Shares of Alibaba Group Holding Ltd. are rising in pre-market trading after the company’s first-quarter earnings report.
For the three months ended June 30, the company said net income was $1.31 billion, or 50 cents a diluted share, representing a 41 percent decrease due to a one-time increase in share-based compensation charges. Excluding the charge, net income would have increased by 33 percent from last year. On an adjusted basis, non-GAAP net income was $3.04 billion, or $1.22 a diluted share. Revenues rose 61 percent to $12.23 billion from year-ago figures.
Wall Street was expecting $1.21 in adjusted diluted earnings per share on revenues of $11.8 billion. Shares of Alibaba were up 3.8 percent to $184.64 in premarket trading at 8:12 a.m.
Daniel Zhang, chief executive officer of Alibaba Group, said, “Alibaba had another excellent quarter, with significant user expansion and even more robust engagement across our growing ecosystem. Our China retail marketplace business continues to gain share, with New Retail initiatives driving further revenue growth and enabling our retail partners to seamlessly serve customers.” He added that the company is adding more value and choice to consumers, “with digital entertainment and local service offerings that tap into big addressable markets beyond core commerce.”
Maggie Wu, chief financial officer, said, “The exceptional growth across our major segments of core commerce, cloud computing and digital media and entertainment validates our strategy of investing in customer experience, product, technology and infrastructure for the future. We remain confident in our ability to gain market leadership by delivery unique value propositions to our business customers, partners and consumers.”
The company said annual active consumers on its China retail marketplaces “reached 576 million, an increase of 24 million from the 12-month period ended March 31, 2018.”
Alibaba said that earlier this month, it launched “88VIP,” a new loyalty membership program. The subscription-based program offers a set of commerce, entertainment and local services in China, plus exclusive membership offerings and privileges across the Alibaba ecosystem. Those benefits include discount savings on Tmall Supermarket, Tmall Global and brand stores on Tmall, as well as subscriptions to Alibaba’s video- and music-streaming platforms, an online movie ticket service and an on-demand delivery service. Further, the company said international brands such as MCM, Moschino and Giuseppe Zanotti launched flagship stores on Tmall and joined its Luxury Pavilion, the customized and premium shopping destination on the site.