- Revenue soars 56%
- Adjusted EBITDA jumps 68%
- The online giant’s net profit doubles
Chinese ecommerce giant Alibaba has posted a surge in profits and sales in its second quarter as its commerce and cloud technology division bolstered growth.
The etailer reported a 68% leap in adjusted EBITDA to $3.46bn (£2.69bn) year-on-year in the financial quarter ending June 30, driven by a 56% jump in revenue during the period to £7.4bn (£5.74bn).
Net income doubled, up 96% to $2.07bn (£1.61bn) and the operating margin was boosted to 35%, up from 27% last year.
The core commerce division, which includes online marketplace Tmall, delivered a 58% rise in sales to $6.34bn (£4.92bn) and drove the bulk of growth.
Cloud computing division rockets
Sales in the cloud computing division grew apace, up 96% to $359m (£278.6m).
Active customers across retail marketplaces increased from the previous quarter by 12 million to 466 million.
International retail operations posted a 136% sales jump to $389m (£301.9m) during the period, driven by sales across Southeast Asia.
The retailer also flagged its purchase in May of Chinese department store group Intime, which operates 49 malls and shopping centres across the country.
Alibaba said the acquisition would “support our strategy to transform conventional retail, especially in soft goods and branded products, by leveraging our substantial consumer reach, insight and technology”.
Chief executive Daniel Zhang said: “Alibaba had a strong start to fiscal 2018, reflecting the strength and diversity of our business and the value we bring to customers on our platform.
“Our technology is driving significant growth across our business and strengthening our position beyond core commerce.”