ALIBABA Group said revenue in the second quarter surged 56 percent to US$7.4 billion amid strong growth in its online retailing platform and other business segments.
Alibaba's revenue rose to 50.1 billion yuan ($7.51 billion) for the three months ended June 30, compared with analysts' average estimate of 47.7 billion yuan, according to Thomson Reuters I/B/E/S.More news: Malala gets admission into Oxford University
China's ongoing trend of more consumers buying products online drove Alibaba's revenue during the quarter. Mobile active users (MAUs) on these retail marketplaces reached 529 million in June, an increase of 22 million over March 2017.
Thursday's results show that Alibaba Group Holding Ltd BABA.N , one of Asia's most valuable companies, continues to derive the lion's share of its revenue from e-commerce, despite strong growth in its entertainment and cloud businesses. "Our technology is driving significant growth across our business and strengthening our position beyond core commerce", said Daniel Zhang, Chief Executive Officer of Alibaba Group. Revenue from the cloud grew 96% in the quarter to 2.4 billion Chinese yuan. Alibaba is also pouring more money into e-commerce. Not only is Alibaba enjoying an increase in the number of paying customers, the customers are also spending higher than usual as evidenced by rising usage of services. As Alibaba-owned Lazada operates across Southeast Asian countries including Indonesia, Zhang said, "we anticipate that we can generate a lot of synergies and chemistries in the Indonesian market".More news: Trump ending ObamaCare subsidies would send premiums soaring: CBO
Alibaba is also benefiting from booming demand in its cloud business.
Alibaba's global expansion amid Chinese consumers' growing demand for imported products boosted quarterly revenue growth of the company's worldwide and cross-border consumer businesses, which shot up by 136% from a year ago. What's more, revenue from its cloud business almost doubled, and entertainment revenue shot up 30 percent.More news: Global Stocks Punished By Geopolitics, US Inflation In Focus