Alibaba announces soaring growth through 2015

Alibaba Group Holding Limited, a China-based e-commerce company, has announced its financial results for the quarter and full year ended March 31, 2015. The company reported full year revenue of RMB76.20bn, a year-on-year increase of 45%. The company also recorded EBITDA of RMB40.75bn, a rise of 33% over the prior year’s result. Accordingly Alibaba’s full year margin stood at 53.48%, a decline from 58.53% in the prior year.

The increase in full year revenue was primarily attributable to the continuing rapid growth of Alibaba’s China commerce retail business which grew by 39% year-on-year, but growth of 88% in international commerce and 215% in other income also made a significant contribution. Within the China commerce retail business mobile revenue grew by 514% to RMB17.84bn.

Although overall EBITDA rose over the year Alibaba’s EBITDA margin actually widened. This was primarily the result of the consolidation of acquired businesses, mainly UCWeb and AutoNavi, and also to investments in new business initiatives, such as cloud computing, digital entertainment, mobile operating system and local services.

For the quarter ended March 31, 2015, Alibaba recorded a 45% year-on-year increase in revenue to RMB17.43bn. The company also reported a 25% rise in EBITDA to RMB2.60bn. Accordingly its margin stood at 49.26%.

“Alibaba had a strong quarter with significant growth across our key operating metrics,” said Jonathan Lu, Chief Executive Officer of Alibaba Group. “We grew revenue, gross merchandise volume and annual active buyers; and we expanded our unrivalled leadership position in mobile. GMV across our China retail marketplaces grew 40% year-on-year, and our annual active buyers increased to 350m, an increase of 37% year-on-year. We extended our strong leadership position in mobile to 289m monthly active users on our mobile e-commerce apps in the month of March and US$49bn in mobile GMV during the March quarter. Our business continues to perform well, and our results highlight both the strength of our ecosystem and the strong foundation we have for sustainable future growth in China, and beyond.”

Alibaba Group also announced that Daniel Zhang, currently Chief Operating Officer of Alibaba Group, will become CEO of Alibaba Group, effective May 10, 2015. Current CEO, Jonathan Lu, will work with Daniel to ensure a successful transition in the coming months. Jonathan will remain on the board of directors of Alibaba Group as Vice Chairman.