Alibaba revenue rises 32%, beating expectations despite concerns about Chinese economy

(Reuters) – Chinese e-commerce giant Alibaba Group second-quarter revenue rose 32 percent, beating analysts’ estimates, even as the value of goods transacted on its platform grew at a slower pace.

Revenue rose to 22.2 billion yuan ($3.49 billion) in the quarter ended Sept. 30, compared with the average analyst estimate of 21.245 billion yuan ($3.34 billion), according to Thomson Reuters.

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Gross merchandise volume, or the total value of goods transacted on its platforms on China retail marketplaces, rose 28 percent to 713 billion yuan ($112.2 billion).

The strong performance comes against the backdrop of broader concerns that the Chinese economy is slowing. Those worries have driven down Alibaba’s stock, but have also hit U.S.-based tech companies that have been counting on China as a source of growth.

Alibaba shares closed at $76.35 on Monday, down about 36 percent from their record high of $120 in November 2014. Alibaba’s New York-listed shares were up 8.5 percent in premarket trading on Tuesday.

Mobile revenue nearly tripled to $1.66 billion, with mobile GMV accounting for 62 percent of total GMV transacted on Alibaba’s China retail marketplaces.

Alibaba is branching out from its core online-only shopping platforms in a bid to stem a slowdown in revenue growth and the total value of goods transacted over its websites.

The company reported net income attributable to shareholders of $3.58 billion, or $1.40 per share. Excluding items, the company posted earnings of 57 cents per share.