Alibaba revenue beats expectations despite contraction

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Hong Kong, Aug.5 (BNA): Chinese e-commerce firm Alibaba Group Holding beat market expectations for revenue in its quarter ended June, even as revenue was nearly flat and its net income plunged 50%.

Alibaba reported revenues of 205.6 billion ($30.4 billion) for its quarter ended June, down 0.1% from the same period last year but still better than the average analyst estimate of $30.09 billion, according to FactSet. It was the first time the company has reported a contraction in sales.

Net income tumbled 50% to 22.7 billion yuan ($3.4 billion). Excluding one-time charges, adjusted earnings per ADS totaled $1.75, topping the average analyst estimate of $1.60 per share.

The company’s U.S.-listed shares rose 5% in early trading Thursday. Its shares traded in Hong Kong slipped 2.2% early Friday, reports AP.