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Alibaba misses profit forecast despite 54% sales increase
[BEIJING] 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 US$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 per cent year on year to US$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 per cent to 16.83 billion yuan (US$2.75 billion), above expected sales of US$2.7 billion. Mobile revenue was more than ten times higher than in the same period last year. Diluted earnings per share were US$0.20.
Alibaba shares were up 2.8 per cent in pre-market trading in New York, from US$101.80 at Monday's close.