Alibaba Quarterly Profit Hit by Stricter Government

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Chinese internet giant Alibaba has seen its profits fall by no less than 81 percent in the past quarter, partly as a result of the stricter regulations that the Chinese government applies to the Chinese tech giants.

 

Earlier this year, Alibaba was the subject of an investigation into the unfair competition. As a result, the group was sentenced to a fine of 2 billion pounds. In addition, the regulations for a number of sectors in which Alibaba is active (private lessons, meal delivery, video games,…) have been tightened.

Alibaba posted a net profit of 5.37 billion yuan from July to September, compared to 28.7 billion yuan in the same period last year. On the other hand, turnover rose by 29 percent in one year to 200 billion yuan).

The group expects a further increase in turnover for the rest of the year, by 20 to 23 percent, but also points to ‘uncertainties’ that could make its activities more difficult. The corona crisis and slower consumption growth due to the lockdowns could also cause problems.

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