Alibaba Quarterly Profit Plunges 81 Percent

Alibaba Group Holding Ltd forecast annual revenue to grow at its slowest pace since its 2014 debut and its second-quarter results missed expectations amid slowing consumption in the country and tighter regulatory scrutiny.

The Chinese e-commerce giant said on Thursday that profit for the three months ending September tumbled 81 percent. It came in at 5.37 billion yuan (US$833 million), falling from 28.77 billion yuan earned over the same stretch last year.

Revenue rose 29 percent to 200.69 billion yuan (US$31.44 billion), its slowest rate of growth in six quarters.

Analysts on an average had expected revenue of 204.93 billion yuan, according to Refinitiv data.

On an adjusted basis, it earned 11.20 yuan per share, below estimates for 12.36 yuan.

US-listed shares of Alibaba, which expects its fiscal year 2022 revenue to grow by 20-23 percent, were down 3 percent before the opening bell on Thursday.

The company last week recorded its slowest sales growth during its annual Singles' Day, the world's biggest online shopping fest.

China's big tech companies have been under pressure as regulators clamped down on powerful players from Alibaba to ride-hailing giant Didi Global Inc, citing anti-monopoly and security reasons. (AFP/Reuters)