Ecommerce giant, Alibaba, has reported a 60% jump in revenues in the first three months of 2017.
Alibaba Revenues Increase by 60% Backed By Chinese Growth
China-based ecommerce company, Alibaba, says its impressive revenue growth was largely driven by its expanding customer base in China.
In the quarter, over 450 million shoppers in China used Alibaba with the annual average spending increasing by about a third.
This trend pushed Alibaba revenues to $5.6bnh in the quarter. However, investors were still unimpressed, which saw shares plummeting 3% in Thursday trading.
Alibaba, founded by Jack Ma, is the largest ecommerce company in China.
Up to 67% of the company’s revenue comes from Chinese business.
Alibaba, like Amazon, its US rival, has expanded into other businesses including media and cloud computing with its video hosting service Youko Tudou.
According to Alibaba, its cloud-computing services served up to 870,000 customers at the end of March. Revenue from the cloud-computing unit reached $314m, double what it was in the same period last year.
Revenue from digital media and entertainment showed more rapid growth with a 234% year on year growth to $571m.
The firm said part of its future growth plan is expanding internationally with global sales in the quarter tripling from the same period last year to $353m.
Last year, Alibaba acquired Singapore-based ecommerce site Lazada.
Alibaba’s total quarterly profits amounted to $1.5bn, a 98% year-on-year growth.
However, for the financial year closing March, total company profits fell 40%, which was attributed to the firm’s film unit, Alibaba Pictures Group.
In a statement, Alibaba chief financial officer, Maggie Wu said, “Our robust results show how strong our core business is as well as the positive momentum of our emerging businesses.”
Earlier this month, Alibaba’s digital payment giant, Alipay, announced that it would be expanding in the US.
Customers will be able to use Alipay with almost 4 million merchants following a deal with First Data, a credit card processing firm.
The deal is primarily designed for Chinese users visiting North America.
It comes following a small pilot in New York and California and pits Alipay in direct competition with US companies including PayPal, Android Pay and Apple Pay.
Alipay is the leading provider of mobile payments services in China. The company, together with rival WeChat are keen on expanding their presence globally.
At the same time, US companies in the industry are looking to expand into the Chinese market.
In February, Apple partnered with China Union Pay so the lender’s customers can use Apple Pay.