Steady digital media and entertainment revenue growth for Alibaba | Major Businesses | Business
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As it announced its latest financial results, Chinese ecommerce giant Alibaba Group Holding has revealed that its drive for increased paying subscribers in digital media and entertainment has seen solid returns.

alibaba 16Aug2019For the quarter ended 30 June 2019, Alibaba reported total revenue was RMB114.924 billion (US$16.741 billion), an increase of 42% year-over-year. Annual active consumers on its China retail marketplaces reached 674 million, an increase of 20 million from the 12-month period ended 31 March 2019, while mobile monthly active users on its China retail marketplaces reached 755 million, an increase of 34 million over March 2019.

Income from operations was RMB24.375 billion (US$3.551 billion), an increase of 204% year-over-year, and adjusted EBITDA increased 34% year-over-year to RMB39.238 billion (US$5.716 billion).

Net income attributable to ordinary shareholders was RMB21.252 billion (US$3.096 billion), and net income was RMB19.122 billion (US$2.785 billion). Non-GAAP net income was RMB30,949 billion (US$4.508 billion), an increase of 54% year-over-year. Net cash provided by operating activities was RMB34.612 billion (US$5.042 billion) and non-GAAP free cash flow was RMB26.361 billion (US$3,840 billion).

Digital media and entertainment segment revenue for the quarter grew 6% year-over-year as the industry underwent rationalisation and tighter regulatory scrutiny on content. The company's Youku online video platform continued to focus on delivering a superior user experience and driving increased paying subscribers. During the quarter, its average daily subscribers increased 40% year-over-year.

Commenting on the quarterly results, the company said: “While we continue to invest in original content production capabilities, which gives us better control over content quality, format and scheduling, we are also taking systematic analytical measures to ensure content cost efficiencies and return on investment. These measures have been reflected in reduced losses year-over-year during the quarter.”

Alibaba Group CEO Daniel Zhang added: “Alibaba had a great quarter, expanding our user base to 674 million annual active consumers, demonstrating our superior user experience. We will continue to expand our customer base, increase operating efficiency and deliver robust growth. With strong cash flow from our core commerce business, we will continue to invest in technology and bring digital transformation to millions of businesses globally.”