Economy

Web store giant Alibaba does ‘pretty good’ business

The company released quarterly figures on Friday, which were “pretty good”, says stock market commentator Durk Veenstra.

Still, according to him, things went less well than hoped. For example, Alibaba’s market share lags behind competitors such as Amazon. “There is a lot of price pressure in the market: Alibaba has to hand in money to maintain market share,” said Veenstra.

Due to increasing competition in the e-commerce market in and outside of China, analysts are anticipating discounts and lower earnings for the company in the coming year.

Alibaba itself expects turnover growth of at least 27.5 percent for the coming year.

Turnover and profit grew

In the past financial year, which ran until the end of March, sales increased by 35 percent to 509.7 billion yuan, some 65.5 billion euros. In the last quarter, growth slowed by 22 percent.

Net profit came in at 149.3 million yuan, down from 87.6 billion yuan last year.

Alibaba had more users than a year earlier, both in the webshops and in the cloud services. The corona virus forced more people to work from home and the cloud branch did good business.

At the web shop branch, retailers received part of their commission back because of the virus.

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