Alibaba Q2 net profit fell 34 pct on higher cost

Posted by Aliuser on Aug 14, 2009 in Alibaba Financial Results

Alibaba ( HKSE 1688), China largest B2B platform, saw a dip of 34.2 percent in quarterly net profit on Thursday as margins fell on higher investment and marketing costs, according to Reuters.

Alibaba.com announced unaudited financial results for the quarter and half-year ended June 30, 2009. A special dividend of HK$0.20 a share to be paid out to shareholders around Sept. 9. Alibaba’s net profit for the second quarter came in at 260.7 million yuan ($38.2 million) versus 396.5 million yuan a year earlier.

The Hangzhou–based Internet company reported strong revenue growth of 23.6 per cent as a result of the new addition of revenue coming from paid members.

” We will rearrange our existing initiatives into four business units: International Core Business Unit (ICBU), China Core Business Unit (CCBU), Information Technology Business Unit (ITBU) and Ali-Institute. Of these, ITBU and Ali-Institute are new divisions that will help small businesses get simpler access to technology to upgrade their operations, as well as train personnel in these small businesses to better use the technology. We will also continue to work with partners to solve the financing issues of small businesses through the Ali-loan program.” Chief Executive Officer David Wei said in the press announcement.

More details and figures are available at Alibaba.com Reports Strong Customer Net Additions With Paying Members Surpassing Half a Million in Q2 2009.