Chinese e-commerce giant Alibaba Group posted profit that beat analysts' estimates in its first earnings report as a public company, with increased shopping traffic and mobile spending in China generating more advertising.
Alibaba Group, with 307 million active buyers as of September, is luring more sellers to its e-commerce sites by providing advertising tools that analyze user preferences.
Alibaba, which raised a record $25 billion in its September IPO, has jumped 50% since it sold the stock at $68 per share. Revenue jumped 54% during the quarter.
About 29% of revenue across China retail marketplaces comes from mobile. The company, owner of Taobao Marketplace and Tmall.com, is ramping up preparations for a Nov. 11 sales event, its busiest shopping day of the year. It's competing with Tencent Holdings for the 527 million Chinese who access the internet from mobile devices. China has 632 million internet users, more than the population of any other country except India.
Chairman Jack Ma last month said Alibaba may cooperate with Apple for mobile payment services as he seeks partners in Hollywood to add television and movie content. Mr. Ma visited Hollywood in October to learn about movie studios, saying China's film industry needed great cultural products. Alibaba offers entertainment content including high-definition movies and TV shows through its set-top boxes and online video site Youku Tudou, in which Alibaba has a minority stake.