Staff Reporters
Feb 24, 2023

Alibaba overcomes Covid challenges in Q3, revenues edge higher

TOP OF THE CHARTS: Alibaba beat analysts' expectations with a 2% revenue gain and 16% EBITA gain YoY in Q3. CEO Daniel Zhang expects to see Chinese consumption return 'back on track' after the last Covid wave.

Alibaba overcomes Covid challenges in Q3, revenues edge higher

Chinese ecommerce titan Alibaba Group has reported better than expected earnings for Q3, despite facing "significant challenges due to the rapid changes in the Covid situation during December."

Revenues in the quarter edged up 2% from the previous year, with earnings before taxes, interest and amortization managing a double-digit gain of 16%.

“We delivered a solid quarter despite softer demand, supply chain and logistics disruptions due to impact of changes in COVID-19 measures,” said Daniel Zhang, chairman and chief executive officer of Alibaba Group.

Despite difficulties with supply chain, Alibaba's logistics arm gained 27% in revenue, supported by strong domestic demand for deliveries which persisted through the pandemic. Other growth areas were Alibaba Cloud services (up 3%) and its international retail ecommerce business including Lazada and AliExpress where orders grew by 3% as well 

Cost-optimisation and operating efficiencies, meanwhile also helped curb losses at Taobao Deals along with stronger revenues at FreshHippo. 

"With the lifting of Covid-related measures and the end of the peak wave, everything is now quickly getting back on track," Zhang said. "In general, consumer confidence and business confidence are rising. Logistics has resumed normal operations, with the entire supply and manufacturing chains becoming active. Digital transformation across different industries and sectors has accelerated significantly."

This article is filed under...
Top of the Charts: Key data at a glance


Campaign Asia

Related Articles

Just Published

12 hours ago

Agency Report Cards 2023: We grade 31 APAC networks

Campaign Asia-Pacific presents its 21st annual evaluation of APAC agency networks based on their 2023 business performance, innovation, creative output, awards, action on DEI and sustainability, and leadership.

13 hours ago

OpenAI inks multi-year content deal with News Corp

The five-year agreement comes as Microsoft, OpenAI, and Google face intense scrutiny over training AI models on copyrighted content usage without consent.

13 hours ago

Agency Report Card 2023: Initiative

Losing long-term client Carlsberg is a blow for the agency, and Initiative has tried to mitigate the losses with solid employee initiatives.

13 hours ago

Global indie media rankings: PMG and Cossette lead ...

Big single wins for Australia's Nunn Media and Howatson+Co helped them place 3rd and 11th respectively.