|15 May, 2019

Alibaba revenue beats estimates on cloud boost; shares rise

Company' shares rose more than 2% to $179.79 in pre-market trading

FILE PHOTO: The logo of Alibaba Group is seen at the company's headquarters in Hangzhou, Zhejiang province, China July 20, 2018. REUTERS/Aly Song/File Photo GLOBAL BUSINESS WEEK AHEAD

FILE PHOTO: The logo of Alibaba Group is seen at the company's headquarters in Hangzhou, Zhejiang province, China July 20, 2018. REUTERS/Aly Song/File Photo GLOBAL BUSINESS WEEK AHEAD

REUTERS/Aly Song/File Photo GLOBAL BUSINESS WEEK AHEAD

China's Alibaba Group Holding Ltd beat analysts' estimates for fourth-quarter revenue on Wednesday, boosted by growth in its core e-commerce and cloud computing businesses.

The company' shares rose more than 2% to $179.79 in pre-market trading.

Alibaba makes money primarily by selling advertising and promotional services to third-party merchants that list products on Taobao and Tmall, two of its e-commerce sites. The business boomed in tandem with internet adoption and mobile phone penetration in China.

Alibaba's revenue rose to 93.50 billion yuan ($13.59 billion) for the three months ended March 31, beating estimates of 91.58 billion yuan, according to IBES data from Refinitiv.

Revenue from the company's cloud computing business rose 76% in the reported period.

Alibaba is the world's third-largest cloud service provider, after Microsoft Corp and Amazon.com Inc, and the largest in China with a market share of over 40%, according to data from IDC.

Net income attributable to ordinary shareholders rose to 25.83 billion yuan from 7.56 billion yuan in the fourth quarter.

($1 = 6.8783 Chinese yuan renminbi)

(Reporting by Josh Horwitz in Shanghai and Vibhuti Sharma in Bengaluru; Editing by Shounak Dasgupta) ((Josh.Horwitz@thomsonreuters.com;))

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