Alibaba Misses Profit Forecast Despite 54 Percent Sales Increase

Alibaba Misses Profit Forecast Despite 54 Percent Sales Increase
Alibaba Group Holding, posted net profit well below estimates even as revenues rose in the Chinese e-commerce giant's first quarterly report to Wall Street since its record-setting $25 billion (roughly Rs. 1,53,300 crores) listing.

The profit miss was due to share-based compensation expenses and an increase in amortisation of intangible assets, the company said.

Net income attributable to shareholders fell 38.6 percent year on year to $494 million (roughly Rs. 3,000 crores) in its second quarter to Sept. 30, under performing analyst estimates of $1.17 billion (roughly Rs. 7,100 crores), according to a Thomson Reuters SmartEstimate poll of 21 analysts.

Revenue for the quarter rose 53.7 percent to 16.83 billion CNY ($2.75 billion) (roughly Rs. 16,800 crores), above expected sales of $2.7 billion (roughly Rs. 16,500 crores). Mobile revenue was more than ten times higher than in the same period last year. Diluted earnings per share were $0.20.

Alibaba shares were up 2.8 percent in pre-market trading in New York, from $101.80 at Monday's close.

© Thomson Reuters 2014

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