Alibaba profit sinks 88% as investments sour

Revenue rose 22% from a year ago.

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Alibaba Group profit sank 88 percent from a year ago as investments in other publicly traded companies soured.

The Hangzhou, China-based e-commerce provider earned 3.16 billion Chinese yuan ($447 million), or an adjusted 1.15 yuan per share (16 cents) as revenue rose 22 percent from a year ago to 114.3 billion yuan ($16.14 billion).

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Alibaba said the decline was driven by an investment loss of $1.09 billion in the period, compared with a net gain the year before.

“Our overall business continued to experience strong growth, with a total annual active consumer base of 960 million globally, despite concluding the fiscal year with a quarter impacted by the effects of the COVID-19 pandemic,” CEO Daniel Zhang said in a statement.

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Alibaba said annual active users on its China marketplaces rose by 15 million to 726 million in the 12 months ended December 31. Mobile monthly active users increased by 22 million to 846 million in March 2020.

Gross merchandise volume, or total sales value for merchandise sold, reached 7.053 trillion yuan ($1 trillion), for Alibaba digital platforms.

TickerSecurityLastChangeChange %
BABAALIBABA GROUP HOLDING LTD201.72+2.02+1.01%

Alibaba said some of its businesses experienced slow or negative growth as a result of the pandemic.

Looking ahead, Alibaba said that while it's not possible to determine the full impact of COVID-19 on its business, full-year 2021 revenue is expected to be over 650 billion yuan.

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Alibaba shares were unchanged year-to-date through Thursday, outperforming the S&P 500's 8.74 percent decline.