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Alibaba Group Holding Co. (BABA) reported higher-than-expected Q2 results on Friday, but China-based online retailer said revenue for 2019 would be lower than expected, citing "fluid macro-economic conditions ".
Alibaba said diluted earnings stood at $ 1.11 per share, just ahead of the consensus of $ 1.07 and up 12% from the same period last year. Group sales, up an impressive 54 percent from the same period last year to $ 12.4 billion, were lower than I / E's forecast of $ 12.5 billion. / B / S Refinitiv. Alibaba also adjusted its revenue outlook for the 2019 fiscal year from 4% to 6%, to bring them between 375 billion yuan and 385 billion yuan, down from the 400 billion yuan suggested after the publication of its results of March.
"Alibaba has experienced another quarter of strong rapid growth, with annual active consumers increasing by $ 25 million to $ 601 million in the 12 months to September 30, 2018," said the Executive Director. Daniel Zhang. "We have generated synergies between our businesses, demonstrating the power of Alibaba's digital economy, which will be further enhanced at our upcoming 11.11 Global Shopping Festival. As part of our New Retail strategy We are fulfilling our vision of digitizing the growth of traditional retailers – their in-store operations, based on Alibaba's technology and consumer insights. "
Alibaba shares recorded a 4.2% increase in pre-market transactions in New York on Friday following the results, indicating a benchmark price of $ 157.63 each, which would reduce its cumulative decline to around 8%.
The group also said that monthly mobile active users on its retail platform grew by 32 million compared to the previous quarter, reaching 666 million, while the annual number of active customers grew by 25% to reach a little over 600 million.
The quarterly results of September are the first since the announcement of the departure of its charismatic co-founder, Jack Ma, one of the richest men in the world, who announced that he would leave his position as president next year to devote himself to educational philanthropy.
Ma, who stepped down as CEO in 2013, has been the face of China's most successful technology giant and one of the most recognizable men in the global industry. The former English teacher, who had no background in technology, helped build a company that now is worth nearly half a trillion dollars, with operations in 200 countries and 66,000 employees, while amassing a personal fortune of about $ 36 billion, according to Forbes. esteem, making him the third richest man in China.
"I have thought a lot and prepared this succession plan for ten years," Ma said in a letter to shareholders published on the company's website. "I am pleased to announce this plan today thanks to the support of the Alibaba Partnership and our Board of Directors, and I would like to extend a special thank you to Alibaba colleagues and your families. for your trust, your support and our joint venture in recent years, 19 years have prepared us for this day with confidence and strength. "
"This transition shows that Alibaba has moved to the higher stage of corporate governance, moving from an individuals-based society to one based on systems of organizational excellence and a culture of excellence." talent development, "said Ma.
Ma, who will remain on the Alibaba board of directors until 2020, will cede the position of executive chairman to the current chief executive, Daniel Zhang, who has largely led the international expansion of the group since taking office as CEO in 2015. Zhang, 46, is relatively unknown to investors. , but has led the group's teleconferences for several years and is behind the creation of the company's "Single" Day, which is now the largest annual online shopping event in the world.
"Under the leadership of (Zhang), Alibaba has grown steadily and sustainably for 13 consecutive quarters," Ma said. "His analytical mind is unparalleled, he defends our mission and our vision, he assumes his responsibilities with passion and he has the courage to innovate and test creative management models. "
"Starting the process of passing Alibaba's torch to Daniel and his team is the right decision at the right time because I know by working with them that they are ready and I have full confidence in our new generation of leaders, "added Ma.
However, this generation is likely to face greater growth and profit challenges than its predecessors, given President Donald Trump's goal of reducing China's trade surplus of $ 375 billion with governments. United States and suppress the theft of intellectual property recent growth of international technology enterprises in China.
Chinese authorities are also beginning to worry about the strength and influence of the sector, especially the country's youth, and the aggressive expansion of some Chinese-based companies that have capital of the world's second largest economy. China has imposed new limits on the online gaming sector, as well as an attempt to control overseas purchases by investment firms such as HNA and Ant Financial, also controlled by the billionaire Ma.
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