Alibaba Posts June Quarter Earnings

Alibaba's Jack Ma
Alibaba Group Holding Ltd.'s executive chairman, Jack Ma.
Getty Images.

Chinese e-commerce behemoth Alibaba Group Holding Ltd. said its revenue and profits continued to see accelerated growth in the June 2015 quarter.

The e-tailing giant said its revenues for the first quarter ended June 30, 2015 rose 28 percent year-over-year to $3.3 billion and would have increased by 36 percent excluding the effect of the suspended online lottery business and the SME loan business transferred to Ant Financial.

Net income also gained significantly to land at $4.97 billion, a 148 percent year-over-year rise, which includes a deemed disposal gain of $4 billion from the deconsolidation of Alibaba Pictures. Meanwhile, income from operations fell 25 percent to $832 million.

Alibaba said its gross merchandise volume (GMV) — a measure of growth in the e-commerce space — grew 34 percent year-over-year to $109 billion while mobile GMV gained 125 percent to $60 billion. Mobile GMV, the company said, grew to account for 55 percent of total GMV transacted on the China retail marketplace. Mobile revenue totaled $1.3 billion, exceeding 50 percent of Alibaba’s total China commerce retail revenue for the first time, according to Alibaba’s CFO Maggie Wu.

“We had a strong quarter and we continued to build the foundations for future growth. We focused our efforts on building healthy GMV growth, delivering the best consumer experience, and improving the quality and sustainability of merchants doing business on our marketplaces,” said Daniel Zhang, Alibaba’s CEO, in a release. “We are excited about our top strategic priorities, including internationalization, winning in mobile, expanding our ecosystem from cities to villages, and investing in core technologies that will propel our cloud computing business.”