Chinese online giant Alibaba increased its full-year turnover forecast after it managed more than 50 % growth in its previous quarter, exceeding everyone’s expectations.
Net profit up by a third
Alibaba’s third quarter turnover grew 54 % to 53.25 billion yuan (7.2 billion euro), followed by a 38 % net profit increase to 17.12 billion yuan (2.3 billion euro). Its online marketplaces, Taobao and Tmall, are its most important sources of income, with a joint 46.58 billion yuan (6.3 billion euro) turnover, which is a 45 % increase.
These excellent third quarter results have prompted the company to instantly increase its profit forecast, targeting a 53 % growth instead the previous 48 %. Its increased ad income and the increased Chinese consumer’s expenditure were major contributors to its massive growth. For instance, on 11 November (Singles Day), Alibaba once again smashed its previous record, selling for nearly 16 billion euros’ worth of merchandise.
