Chinese internet giant Alibaba expects its turnover to grow 45 to 49 % in the current fiscal year, according to CFO Maggie Wu in an investor call.
34 billion dollar turnover
Alibaba is full of confidence, claiming a 45 to 49 % turnover increase for its current fiscal year (which ends March 2018) according to CFO Wu’s statement in a Chinese investor call. The number trumps the 35 % forecast by press agency Bloomberg’s analysts.
Taking into account that the Chinese internet giant generated a 23.5 billion dollar (20 billion euro) turnover in its past fiscal year, it now hopes to reach 34 billion dollars (more than 30 billion euro), considerably more than analysts’ 31.5 billion dollars forecast.
The Chief Financial Officer explains is diversification, designed to offset its slower Chinese growth, will create this huge turnover increase. For instance, Alibaba is now active in artificial intelligence, cloud computing and big data.
One thing to consider: during the same investor call last year, Alibaba predicted a 48 % turnover increase and that turned out to be a 56 % turnover increase. It will be interesting to see whether Maggie Wu’s forecast will once again turn out to be too low…