Alibaba: Alibaba posts better-than-expected Q1 sales despite Chinese recovery running out of steam


by Yuvraj Malik and Casey Hall

(Reuters) – China’s Alibaba Holding reported better-than-expected first-quarter revenue on Thursday as consumer sentiment improved from a year earlier, which was marred by coronavirus lockdowns. the pandemic.

Alibaba posted revenue of 234.16 billion yuan (29.46 billion euros) in the quarter, up 14% year on year. Analysts had expected 224.92 billion yuan, according to Refinitiv data.

However, the results come at a time of growing fears over China’s economy, which is faltering after an initially strong recovery from the lockdowns.

On Wednesday, China announced that it had slipped into deflation in July, a development that should further weigh on buyers’ willingness to spend.

First-quarter revenue at the end of June was helped by a recovery in consumer shopping on platforms such as Taobao and Tmall, boosted in June by the 618 festival, China’s second-largest online retail event.

Customer management revenue, which measures merchant spending on Alibaba, rose 10% to 79.7 billion yuan, driven by sellers’ increased willingness to invest in advertising and the increased sales during the festival.

(Written by Yuvraj Malik in Bangalore; French version Nathan Vifflin, editing by Kate Entringer)

Copyright © 2023 Thomson Reuters

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