Chinese e-commerce giant Alibaba posted net attributable profit of 5.367 billion yuan for the whole of its second fiscal quarter, ended in September, which is equivalent to a decrease of 81% compared to the profit obtained in the same period. from the previous year, as reported by the company on Thursday.
Revenues for the quarter reached 200.69 billion yuan, up 29.4%.
By business segment, the retail e-commerce division grew 31% to 171,170 million yuan, while the cloud computing business advanced 33% to 20,007 million yuan.
The digital media and entertainment branch was stable at 8.081 billion yuan.
Costs associated with revenues rose 44.2% to 129.75 billion yuan, while sales and marketing expenses reached 28.857 billion yuan, up 66.1%.
Product development expenses fell 20.5% to 15,297 million yuan, while general and administrative expenses fell to 8,874 million yuan, down 25.8%.
In addition to higher costs, the steep decline in profits was due to interest and investment income, which was negative at 11,456 million yuan, compared to a positive figure of 10,510 million yuan in the second quarter of the previous year. .
Thus, in the whole of the first six months of Alibaba’s fiscal year, the company posted net attributable profits of 50.508 million yuan, 33.9% less.
In the period, revenues reached 406,430 million yuan, an increase of 31.6%.