Alibaba Group Holding Ltd.’s profit jumped in the first quarter as advertisers boosted spending on the Tmall and Taobao Chinese e-commerce platforms ahead of its initial public offering. Net income almost tripled to $1.99 billion, or 84 cents a share, in the three months ended June, according to a filing with the U.S. Securities and Exchange Commission. Revenue rose 45 percent in local currency to the equivalent of $2.54 billion. Alibaba, China’s biggest e-commerce operator, is looking to sell about a 12 percent stake in its IPO and plans to kick off meetings to market the share sale on Sept. 3, people familiar with the matter have said. Alibaba, which is tapping into rising consumer spending in China for its growth, also said the number of users who access its sites through smartphones increased sharply.“Tmall is still in a relative high growth phases,” said Yao Yue, a Shenzhen-based analyst with Morningstar Inc. who values Alibaba at $220 billion. “Tmall has more revenue channels including advertising and commission.” Alibaba may be worth $187 billion after the IPO, according to the average estimate of 11 analysts surveyed by Bloomberg last month. While the valuation may change with the updated financial results, it indicates a price of almost 50 times the latest year’s earnings, data compiled by Bloomberg show.
Posted on: Thu, 28 Aug 2014 00:37:08 +0000
Trending Topics
Recently Viewed Topics
© 2015