E-COMMERCE | Staff Reporter, China

Alibaba's income down 60% to $4.24b in Q3

Outside the new 33% stake in Ant Group and other items, income jumped 44%.

Alibaba Group's net income attributable to ordinary shareholders crashed 60% YoY to $4.24b (RMB28.77b) in Q3 2020, the company announced. In contrast, revenue rose 30% to $22.84b (RMB155.06b) over the same period.

The decline was attributed to a one-time gain from the 33% equity interest in Ant Group, as well as a rise in share-based compensation expense. Excluding these and other items, net income would surge 44% to $6.94b (RMB47.09b).

Diluted earnings per share was at $0.19 (RMB1.31), and non-GAAP diluted earnings per share was $0.33 (RMB2.25), an 37% YoY growth.

Revenue from its China commerce retail business expanded 26% to $14.06b (RMB95.47b), as customer management revenue grew 20% primarily due to robust growth from new monetization formats, such as recommendation feeds, higher volume of paid clicks, and a 21% growth of Tmall online physical goods GMV.

Its international commerce retail business also rose 30% to $1.15b (RMB7,79b), driven by revenue growth from Lazada and Trendyol, but offset by lower revenue from AliExpress as a result of the deconsolidation of its Russia business in 2019.

Revenue from local consumer services jumped 29% to $1.3b (RMB8.84b), primarily due to a growth in average revenue per order.

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