Date
22 March 2017
Alibaba Group has released an annual forecast for the first time since it went public in 2014. Photo: Bloomberg
Alibaba Group has released an annual forecast for the first time since it went public in 2014. Photo: Bloomberg

Alibaba projects 48% revenue growth in first forecast

Alibaba Group projected 48 percent revenue for the current fiscal year ending March 2017, providing an annual forecast for the first time since the e-commerce giant went public in 2014.

Sales will rise more than 36 percent if revenues from newly-acquired Southeast Asian online retailer Lazada Group and streaming video service Youku Tudou are excluded, Bloomberg News cited chief financial officer Maggie Wu as saying Tuesday.

That compares with 33 percent growth in the previous fiscal year. 

The guidance reflects how Alibaba is moving into untapped rural markets, exploring business abroad and investing in new sources of income from online media to cloud computing, the report noted. 

Alibaba’s chairman Jack Ma told investors Tuesday that gross merchandise value is no longer the best metric on which to gauge the company’s performance.

That’s because the group is branching out into areas like providing computing to enterprises and growing its advertising revenue.

“Our core business, together with our affiliates, pretty much occupies all the building blocks of e-commerce in China. So it’s not just about the markets, it’s also the cloud computing business, the payments business, local services, digital entertainment, and search,” CFO Wu noted. 

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