Alibaba Annual Profits Lower, Rocked by Investment Losses, Slowing China Economy

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China’s e-commerce and media giant Alibaba recorded lower profits in the 12 months to March 2022, following a year of turmoil for tech companies, a weakening Chinese economy, a COVID revival and Ru…

recorded lower profits in the 12 months to March 2022, following a year of turmoil for tech companies, a weakening Chinese economy, a COVID revival and Russia’s war in Ukraine..

Net profits bore the brunt of the difficult conditions and the market value of some of its investments in other companies reduced by some $7 billion. Annual net income was stated as $7.43 billion , a two-thirds drop. The group’s preferred Non-GAAP profit analysis came in instead at $21.5 billion , down by a less alarming 21%.

The group said that in the March quarter, Youku’s daily average paying subscriber base increased 14% year-over-year “primarily driven by quality content and continued contribution from our 88VIP membership program.” Youku continued to improve operational efficiency “through disciplined investment in content and production capability, which resulted in narrowing of losses year-over-year during the quarter.” But ti did not disclose subscriber numbers.

 

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