Home
Internet
Internet News
Alibaba Reports Slowest Revenue Growth Since Going Public as Competition Bites

Alibaba Reports Slowest Revenue Growth Since Going Public as Competition Bites

The slowing Chinese economy has also taken a toll on the company as consumers cut back discretionary spending.

By Reuters | Updated: 25 February 2022 14:58 IST

Alibaba Reports Slowest Revenue Growth Since Going Public as Competition Bites

Customer management revenue fell 1 percent year-on-year

Click Here to Add Gadgets360 As A Trusted Source

Highlights

Alibaba's revenue is hit by a drop in sales and intensifying competition
Customer management revenue has decreased since the company's IPO
Customer management revenue made up 41 percent of Alibaba's total revenue

Chinese e-commerce giant Alibaba reported on Thursday its slowest quarterly revenue growth since going public in 2014, hit by a drop in sales at its core business segment and intensifying competition. The slowing Chinese economy has also taken a toll on the company as consumers cut back discretionary spending.

Alibaba said group revenue rose about 10 percent in October-December 2021 to 242.6 billion yuan (roughly Rs. 289,348 crore), marking the first time quarterly sales growth has fallen below 20 percent. Analysts on average had expected revenue of 246.37 billion yuan (roughly Rs. 29,425,447 crore), according to Refinitiv data.

Alibaba Discussion

Explore More...

Customer management revenue, a key metric which tracks how much money merchants spend on ads and promotions on Alibaba's sites, fell 1 percent year-on-year. That marks the first time revenue for the segment, which made up 41 percent of Alibaba's total revenue, has decreased since the company's IPO.

Ukraine Invasion: Propaganda, Fake Videos of Russia Attack Bombard Users

Speaking on an investor call, deputy chief financial officer, Toby Xu said the drop was caused in part by lowering merchant fees amid the slowing economy.

During China's annual Singles' Day promotional event last November, the company recorded gross merchandise value growth of 8.5 percent, a record low.

Free Fire India Ban: Singapore Said to Flag Concern Over Ban on Sea's Game

© Thomson Reuters 2022

Can Realme 9 Pro and 9 Pro+ win their respective segments? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.