Friday, August 29, 2014

Alibaba posts strong results ahead of IPO

News this week: China’s leading e-commerce company, Alibaba Group, recorded strong financial results for the quarter ended 30th June 2014. Revenues jumped 46% year-on-year to US$2.54 billion and the group’s net income in the quarter nearly tripled, reaching US$1.99 billion.

The strong result was, in part, due to gains within the company’s mobile business. Alibaba accounts for about 80% of China’s online retail sales and the group generated gross merchandise volume of US$296 billion in the previous 12 months ending 30th June. As of the end of June, Alibaba had 279 million active buyers, a year-on-year 50% increase.

According to media reports, Alibaba’s IPO roadshow will kick-off next month as the company pitches its shares to institutional buyers. It is expected Alibaba will reach a valuation of as high as US$200 billion when the company eventually is listed.

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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