(Reuters) – Alibaba Group Holding on Thursday reported revenue for the quarter to the end of June that beat expectations, despite flat growth due to the impact of COVID-19-related lockdowns in China.
The title of the e-commerce giant listed on Wall Street was up 5% in pre-market trading.
China locked down dozens of cities between April and May as the Omicron variant of the coronavirus raged. Cities like Shanghai have faced severe restrictions that have crippled intra- and inter-city deliveries.
In Shanghai, for example, for most of April, households were unable to order from Taobao or Ele.me, Alibaba’s e-commerce and meal delivery sites. The delivery situation improved only slightly in May.
The lockdown was lifted on June 1, just in time for China’s annual June 18 shopping festival. However, this event could not contribute to the overall activity during the quarter.
“After a relatively slow April and May, we saw signs of recovery in our business in June. ‘high buy,’ the company said.
Revenue was 205.56 billion yuan (29.90 billion euros) in the quarter, compared to an average analyst estimate of 203.19 billion yuan, according to Refinitiv data.
Net profit attributable to ordinary shareholders for the quarter ended June 30 was 22.74 billion yuan, up from 45.14 billion yuan a year earlier.
(Reporting Josh Horwitz and Tiyashi Datta in Bangalore; English version Elitsa Gadeva, editing by Kate Entringer)