Friday, April 25, 2014

Alibaba Group reports strong results in Q4

News this week: China’s largest e-commerce company, Alibaba Group, posted strong results in the fourth quarter after announcing the company will prepare its IPO in the U.S. in the near future.

Net profit in the quarter was US$1.4 billion, up from US$642 million from the same quarter in the previous year. Revenues in the period grew 66% compared with the same quarter in 2012, amounting to US$3.1 billion. The company attributed the 11th November online shopping festival as a key driver of growth, during which Tmall.com and Taobao.com, Alibaba’s consumer-focused e-commerce platforms, reported a combined value of goods traded on their platform of RMB 35 billion (US$5.62 billion) in a single day.

According to media reports, Alibaba’s IPO is expected to be one of the largest since Facebook and is estimated to value the company at more than US$130 billion.

This post is excerpted from BSG's weekly e-newsletter which is part of our subscription research service, BSG Tracker. Visit our website to find out more about this service. You can also follow us on Twitter for all the latest updates.

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