higher costs drag profits down

Alibaba - higher costs drag profits down

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Second quarter revenue was flat year-on-year at $30.7bn. That came as growth in some of the smaller business segments, such as cloud, were more than offset by a 1% decline in the much larger China Commerce segment.

Operating income fell 19% to $3.7bn, largely a result of higher costs as an increased portion of sales came from lower margin businesses.

The group spent $3.5bn on share buybacks over the period and has $12bn remaining, of the current $25bn repurchase programme, to use before March 2024.