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Alibaba misses profit forecast despite 54 pct sales increase

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Reuters BEIJING
Last Updated : Nov 04 2014 | 6:06 PM IST

BEIJING (Reuters) - Alibaba Group Holding, posted net profit well below estimates even as revenues rose in the Chinese e-commerce giant's first quarterly report to Wall Street since its record-setting $25 billion listing.

The profit miss was due to share-based compensation expenses and an increase in amortisation of intangible assets, the company said.

Net income attributable to shareholders fell 38.6 percent year on year to $494 million in its second quarter to Sept. 30, underperforming analyst estimates of $1.17 billion, according to a Thomson Reuters SmartEstimate poll of 21 analysts.

Revenue for the quarter rose 53.7 percent to 16.83 billion yuan ($2.75 billion), above expected sales of $2.7 billion. Mobile revenue was more than ten times higher than in the same period last year. Diluted earnings per share were $0.20.

Alibaba shares were up 2.8 percent in pre-market trading in New York, from $101.80 at Monday's close.

(1 US dollar = 6.1150 Chinese yuan)

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(Reporting by Paul Carsten; Editing by David Goodman)

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First Published: Nov 04 2014 | 6:00 PM IST

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