Alibaba Group Holding Limited is a China based company specializing in services related to digital economy. It competes with Amazon.com Inc., eBay Inc. on a worldwide scale; homegrown competition includes Tencent, JD.com and Baidu. The company derives its revenues from f our major business segments: Cloud computing, Digital media and entertainment, Innovation initiatives and core commerce. As of quarter ended June 30, 2019, the revenues from the different reportable business segments came in at. And let’s look into the Alibaba Revenue by business segment here.
Revenue by business segment (in million US$)
|Digital Media and Entertainment||920||5.50%|
|Innovation initiatives and others||187||1.12%|
|Total Core commerce||14500||86.61%|
In this segment, the company is focused on delivering high value-added services with a strategy to expand market leadership, investments in talent and technology infrastructure and development of new and advanced products and services.
This segment reported a considerable growth in revenue, nearly 66 per cent, for quarter ended June 30,2019 compared to the same quarter of 2018. This is primarily driven by an increase in average revenue per customer. During the June 2019 quarter, the company launched over 300 new products and features, including those related to cloud computing, AI applications, security and data intelligence.
The company invests strategically in original content production capabilities, giving them better control over content quality, format and scheduling. Apart from this, it is also taking systematic measures to ensure content cost efficiency and a decent ROI.
This segment reported a 6% growth for quarter ended June 30,2019 compared to the same quarter of 2018 due to industry wide rationalization and tighter regulatory scrutiny on content. Another reason is a 40% increase in Youku’s average daily subscribers.
Revenue from innovation initiatives and others in the quarter ended June 30, 2019 was US$187 million, an increase of 21% compared to the same quarter of 2018. The increase was mainly due to an increase in revenue from Amap, the largest provider of mobile digital map, navigation and real-time traffic information in China.
This includes both retail and wholesale commerce in China and cross-border areas. This segment, contributing nearly 87 per cent of the total revenue for the quarter ended June 30, 2019, reported a 44 per cent growth compared to the same quarter of 2018. This increase is primarily driven by contributions from direct sales businesses and efficient customer management.
Alibaba Group Holding Limited, publicly traded on the New York Stock Exchange (NYSE) as BABA, provides technology infrastructure and marketing reach to help merchants, brands and other businesses to ensure user engagement and efficient operation.
Headquartered in Hangzhou, Zhejiang, the company provides B2B, B2C as well as C2C sales and services via web portals, shopping search engines, electronic payment and cloud computing services.
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