Alibaba's Quarterly Profits Plummet: Entertainment Unit Returns to Loss
Key Takeaways
- Alibaba's quarterly profit fell 29% to $33 billion.
- Revenue from the digital media and entertainment segment fell to $10.8 billion.
- Alibaba's overall revenue grew 4% to $146 billion.
Profit Decline
Alibaba's quarterly profit declined by 29% to $33 billion, marking a significant drop from the previous year.
This downturn is attributed to the company's entertainment unit returning to a loss-making position.
The digital media and entertainment segment recorded a revenue of $10.8 billion, a decline from the previous quarter.
Revenue Growth
Despite the profit decline, Alibaba's overall revenue grew by 4% to $146 billion.
This growth was primarily driven by the Eleme food delivery service, which reported a 19% increase in revenue.
Other segments, such as cloud computing and e-commerce, also contributed to the revenue growth.
Market Reaction
Shares of Alibaba fell following the mixed fourth-quarter earnings report.
Investors were disappointed by the profit decline and the underperformance of the entertainment unit.
However, the overall revenue growth and the strong performance of Eleme provided some optimism.
Conclusion
Alibaba's quarterly profit decline highlights the challenges faced by the Chinese tech giant.
The return to loss of the entertainment unit and the slowing growth in the e-commerce market are areas of concern.
However, the overall revenue growth and the strong performance of Eleme offer some hope for the future.
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