Yahoo has released financial results for Alibaba's quarter ending on 30 September. Although the Chinese company' growth has slowed down, its turnover still increased with a massive 51% and is now higher than eBay's and Amazon's combined.
Larger than eBay and Amazon put together
In the quarter up to 30 September 2013, Alibaba had a 51 % turnover growth compared to the year before, reaching 1.3 billion euro. The quarter before that, the company managed a 61 % turnover growth and going back another quarter, it even reached 71 %. Its turnover has surpassed that of Amazon and eBay combined. It is 2 % of China’s gross domestic product.
Its gross profit growth dropped to 58 %, compared to 74 % the previous quarter. Gross profit reached 920 million euro.
Alibaba is "black box"
The slower growth is not good news for Alibaba, on the eve of an IPO. What makes matters worse is that these numbers, which Yahoo releases with a quarter’s delay, are the only source of financial information about the Chinese ecommerce giant. “The company is a bit of a black box”, Brian Wieser (a Pivotal Research analyst) told the Financial Times. The IPO would nevertheless be worth 44 billion euro at least.
Will Tao, from iResearch, thinks the slower growth is inevitable: “Every large company will eventually have to accept slower growth.” The Chinese economy also slowed down, which indubitably had its effect on Alibaba.
Alibaba refused to elaborate on the numbers, but a source close to the company defended the numbers: “It is still growing faster than any other company its size.”