Anti-monopoly fine pushes Alibaba to first operating loss as public company

  • 5 months   ago
Anti-monopoly fine pushes Alibaba to first operating loss as public company
China's top e-commerce platform Alibaba Group Holding Ltd (9988.HK), on Thursday posted its first quarterly operating loss since going public in 2014 due to a record anti-monopoly fine by the country's market regulator.
 
Its U.S.-listed shares fell nearly 3% in choppy trading, even as the company forecast strong 2022 revenue, betting that the pandemic-driven shift to online shopping will remain resilient.
 
The outlook, however, was overshadowed by a regulatory crackdown in China that led to the suspension of a $37 billion IPO of its affiliate Ant Group and a $2.8 billion fine in April for anti-competitive business practices. read more
 
The fine led to a 7.66 billion yuan ($1.19 billion)operating loss in the fourth quarter ended March 31.
 
"The Penalty Decision motivated us to reflect on the relationship between a platform economy and society, as well as our social responsibilities and commitments," Chief Executive Daniel Zhang said in an earnings call.
 
Alibaba forecast annual revenue of 930 billion yuan ($144.12 billion) for the year ending March 2022, above expectation of 928.25 billion yuan.
 
 
Source: Reuters

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