Why will Alibabas net profit soar in this quarter?
This is mainly due to the one-off income obtained by Alibaba on September 23 when it became the holder of 33% equity of ant financial services, which reached 69.2 billion yuan. The companys net profit was 32.75 billion yuan, a year-on-year increase of 39.6%.
However, the revenue growth of this fiscal quarter mainly relies on the rapid growth of domestic new retail. According to the financial report, in the second quarter, the revenue of domestic new retail (including HEMA, tmall supermarket and tmall global proprietary business section) reached 18.21 billion yuan, with a year-on-year growth rate of 125%; it accounted for 15% of Alis total revenue, higher than 14% in the previous quarter. It has become the fastest-growing segment of Alis business.
This also shows that the new retail business is becoming the driving force of Alibabas revenue growth.
In terms of new users, Alibabas monthly activity of Taobao tmall mobile terminal in this quarter was 785 million, an increase of 30 million over June 2019, a year-on-year increase of 19.1%, and the annual active consumers increased by 19 million to 693 million, with dividends still remaining in the sinking market.
Among the four business sectors of Alibabas core e-commerce, cloud computing, digital media, entertainment and innovation business, Alibabas core e-commerce business revenue is 101.22 billion yuan, still the largest source of revenue, accounting for 85.0%.
Alibaba clouds revenue growth slows down
According to the financial report, the revenue of cloud computing business in this fiscal quarter was 9.291 billion yuan, a net increase of 3.624 billion yuan over the same period last year, with a growth rate of 64%. Compared with the previous quarters revenue of 7.787 billion, it increased by 19.3% month on month. This growth rate is higher than the previous 35% and 59% growth rates of Amazon and Microsoft cloud businesses. Exceed market expectations.
During the quarter, Alibaba released a series of core technologies in the fields of chips, artificial intelligence, databases, blockchain, etc. Among them, the first chip, including the optical 800, the third-generation self-developed dragon architecture, the creation of new cloud servers, and the daily call scale of Alibaba AI exceeded 1 trillion times, etc.
Alida entertainment still loses money, but the channel is narrowed
Alibabas digital media and entertainment projects are still in a state of loss, but the channel to narrow the loss has been opened.
Data shows that Alibabas digital media and entertainment business revenue is 7.296 billion yuan, compared with 594 million yuan in the same period last year, an increase of 23% year on year. The main reason for the growth is the consolidation of Alibaba film since March 2019.
At the same time, the net loss of Alida entertainment in 2019 was 3.327 billion yuan, compared with 4.805 billion yuan in the same period of last year. The adjusted EBITA loss was 2.207 billion yuan, with a profit margin of - 30%, compared with a loss of 3.802 billion yuan in the same period of last year.
This is mainly due to Youkus measurement of content expenditure, maintaining the production capacity of original content while ensuring cost efficiency and return on investment, thus reducing EBITA loss in this quarter.
Ali said that in the summer archives from July to September this year, Youku was in here! It is the second season of hip-hop dance and the twelve hours of Changan, which are driven by a number of exclusive dramas. At the same time, Youkus average number of daily subscribers increased by 47% year on year, maintaining an upward trend.
In this way, Alida entertainment has encountered strong competitors in business competition. Take Youku for example, there is a gap with iqiyi and Tencent in terms of the scale of paying users and the content produced.
So for Alida entertainment, its a long way to break through the barriers in terms of revenue and net profit.