(Reuters) – Alibaba Group Holding on Thursday reported revenue for the quarter to the end of June that beat expectations despite solid growth due to the impact of COVID-19-related restrictions in China.
The Wall Street-listed e-commerce giant’s title rose 5% in pre-market trading.
China put dozens of cities on lockdown between April and May when the Omicron variant of the coronavirus was rampant. Cities like Shanghai have faced severe restrictions that have crippled delivery within and between cities.
For example, in Shanghai, for most of April, households were unable to place orders on Taobao or Ele.me, Alibaba’s e-commerce and food delivery sites. In May, the delivery situation improved only marginally.
The lockdown was lifted on June 1st, just in time for China’s annual shopping festival on June 18th. However, this event had little impact on overall activity during the quarter.
“After a relatively slow April and May, we saw signs of a recovery in our business in June. Buying high,” the company said in a statement.
Revenue for the quarter was 205.56 billion yuan (29.90 billion euros), compared with an average analyst estimate of 203.19 billion yuan, according to data from Refinitiv.
Net income attributable to ordinary shareholders for the quarter ended June 30 was 22.74 billion yuan, compared with 45.14 billion yuan a year earlier.
(Reporting by Josh Horwitz and Tiyashi Dutta in Bangalore; French version by Elitsa Gadev, Editing by Kate Entringer)