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Alibaba revenue beats expectations despite contraction

Despite revenue being almost flat and net income declining by 50% in the June quarter, Alibaba Group Holding outperformed market forecasts for revenue.

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.

Early Thursday trading saw a 5% increase in the company’s shares listed on the American market. Early on Friday, its shares traded in Hong Kong fell 2.2 percent, according to AP.

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