(Source: Inside Retail Philippines | June 9, 2017 )
Alibaba Group says it is targeting revenue growth of 45-49 percent for the current fiscal year, topping consensus analyst forecasts.
The guidance came from Maggie Wu, Alibaba’s CFO, speaking to investors and analysts at the company’s 2017 Investor Day.
In its last fiscal year Alibaba reported revenues increased by 56 percent, but that included consolidation of revenues from investments such as video-streaming site Youku and Southeast Asian e-commerce company Lazada. Without those additions, Wu said, last year’s growth would have been 44-45 percent.
The strong growth projection was a reflection of a combination of factors, among them the resilience of Alibaba’s core Chinese e-commerce business, continuing healthy spending by Chinese consumers, user growth as well as contributions from new revenue streams coming from investments and initiatives that are having an impact on Alibaba’s top and bottom lines.
The company continues to evolve beyond its China e-commerce roots by moving into digital media and entertainment, cross-border e-commerce, local services, digital marketing and other areas, CEO Daniel Zhang told investors on the first day of the two-day gathering in Hangzhou, China.
“Today we have half a billion customers around the earth, we have close to 10 million small business transacting on our platforms every day, we are now moving into new areas like digital entertainment,” Zhang said.