The Chinese company Alibaba on Tuesday, May 14, released data on the financial results of its activities in the fourth fiscal quarter.
The mentioned technology giant, also the largest Asian player in the e-commerce area, net profit was recorded at 3.3 billion yuan ($452 million) for the fiscal quarter ended in March. This indicator fell by 86% year-on-year.
The company’s revenue for the fourth fiscal quarter amounted to 221.9 billion yuan. This indicator increased by 7% year-on-year.
After the company’s financial results report was published, the price of its shares on the premarket in the United States showed a decrease of about 5%.
It is worth noting that last year was a very difficult period for Alibaba. In 2023, the technology giant carried out the largest reorganization of its corporate structure in the history of its existence. There have also been significant changes in the company’s management. In September, Alibaba was headed by Eddie Wu.
As part of a drive to increase shareholder confidence, the technology giant this year announced an increase in its share buyback program by $25 billion through the end of March 2027.
Alibaba is also facing such a negative circumstance from the point of view of its commercial interests as the slowdown in consumer activity in China. At the same time, the company said that the dynamic of the corresponding tendency is weakening.
Revenue from unit Taobao and Tmall, which specializes in e-commerce, amounted to 93.2 billion yuan in the fourth fiscal quarter. This indicator increased by 4% year-on-year.
The company’s international commercial business recorded revenue of 27.4 billion yuan in the fourth fiscal quarter of 2024. The corresponding indicator increased by 45% year-on-year.
The current year, Eddie Wu promised to resume Alibaba’s growth in the e-commerce area. In this case, investments in the relevant business should become a tool for achieving the goal. The figures for the fourth quarter indicate that the company has already achieved certain positive results in this direction.
As we have reported earlier, Alibaba Launches New Version of Its Large Language Model.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
