Alibaba Reports 86% Profit Drop Despite Beating Revenue Expectations

Alibaba Group Holding reported an 86% drop in profit for the fourth quarter. This was mainly due to changes in the value of its equity investments. Despite the profit drop, revenue beat analyst expectations, resulting in a pre-market dip of just 3% in Alibaba's U.S.-listed shares.

The company saw an increase in domestic eCommerce sales, with the Taobao and Tmall division, which includes Alibaba's Chinese eCommerce operations, posting a 4% year-on-year increase in revenue to 93.2 billion yuan (US$ 12.9 billion), surpassing the 2% growth reported in the previous quarter.

This increase can be attributed to its focus on offering low-cost goods, aligning with consumers' cautious spending habits, even amid increased competition from low-cost rivals like PDD. Additionally, Alibaba has intensified its international expansion efforts, which delivered 45% growth.

Also to give Chinese investors easier access to their shares, Alibaba announced plans to revive an earlier strategy. The company aims to establish a primary listing in Hong Kong by August, while maintaining its existing primary listing in New York. This would create a dual primary listing structure.

Klarna Partners with the Germany Men's National Football Team

Klarna, one of the world's leading payment service providers, has entered into a partnership with the German Football Association (DFB) and its men's national football team. The multi-year agreement, which runs until at least 2026, grants Klarna advertising rights for the team and its brand will be visible on pitch-side hoardings at upcoming international matches.

The partnership includes several key events, including this summer's European Championship (UEFA Euro 2024), which will be held on home soil for Germany. In addition, Klarna will be present at the pre-tournament friendlies against Ukraine on June 3 in Nuremberg and against Greece on June 7 in M?nchengladbach.

"The DFB is the largest sports federation in the world, and the national team is the focus of the entire country - not just for this summer. We are proud to be an official partner of the DFB and the national team and to present our brand on such a big stage," says Dominic Hoffmann, Head of Northern and Central Europe at Klarna.

Founded in Sweden in 2005, Klarna is a licensed bank offering a variety of payment solutions. These solutions include options for both immediate payment and payment spread over installments. The company has established a broad network, collaborating with over 550,000 merchants and serving a customer base exceeding 150 million users across 45 countries.

Uber Pays $950 Million for Delivery Hero’s Taiwan Foodpanda Business

Uber is acquiring Delivery Hero’s foodpanda delivery business in Taiwan for $950 million. The deal, announced Tuesday (May 14), is expected to close in the first half of next year and comes as Delivery Hero has been looking to reduce its operations in Asia.

“Due to its existing presence in Taiwan, Uber is best placed to build upon the significant local operations developed by Delivery Hero and foodpanda over the past years, and invest further into an improved experience for consumers, merchants, and delivery partners,” the companies said in a news release.

After the deal closes, foodpanda’s local consumers, merchants, and delivery partners will move over to Uber Eats, the companies said. Uber and Delivery Hero have also formed a separate agreement that will see Uber purchase $300 million in Delivery Hero shares.

The acquisition — which the companies claim is the largest such deal in Taiwan history outside of the semiconductor industry — will offer consumers more choice in terms of food types and price points by combining Uber Eats and foodpanda merchants into one platform, per the announcement.

“For example, consumers stand to benefit from the combination of Uber’s wider selection across northern Taiwan and in major urban centers with foodpanda’s comparative strength in southern Taiwan and in smaller cities. Better service for consumers helps drive more orders from merchants, and more orders from merchants means more opportunities for delivery partners to earn,” the release said.