Alibaba net profit soars 35%

Alibaba update

Alibaba has recorded a 35 per cent surge in net profit for its third quarter, boosted by its annual Singles Day shopping festival in which the sales bonanza broke records.

The Chinese online retail giant said profit spiked to 24.1 billion yuan (£2.6 billion) between October and December, compared to 17.9 billion yuan (£2 billion) during the same quarter in 2016.

Meanwhile, revenue skyrocketed 56 per cent to 83 billion yuan (£9.2 billion).

Alibaba’s annual sales day, 11.11 or Singles’ Day as it used to be known, attracts China’s growing consumer class which can buy products at the click of a button on their smartphones.

Held on November 11, the date – hence 11.11 – resembles four “bare sticks,” a Chinese term used to refer to single people.

Last year’s event recorded 168.2 billion yuan (£19.33 billion) worth of transactions, a 39 per cent increase from the 2016 festival.

“Alibaba had another great quarter driven by the continued strength of the Chinese consumer and the wide and innovative range of services we provide for merchants and consumers,” Alibaba chief executive Daniel Zhang said in a trading update.

“We are excited by the continued momentum in new retail, which came to life during another record-breaking 11.11 Global Shopping Festival.”

Click here to sign up to Retail Gazette‘s free daily email newsletter