Chinese e-commerce company Alibaba’s digital media and entertainment segment posted revenues of $585 million for the quarter ended December 31, 2016 (Q4 2016), up 270% Year-on-Year from $158 million. The company credited the growth to its increasing revenue from “mobile value-added” products run by UCWeb which includes services like mobile search, news feeds and game publishing. A part of the media and entertainment segment growth is also credited Alibaba’s $4 billion acquisition of video streaming portal Youku Tudou.

Alibaba recently invested Rs 200 crore into UCWeb’s India and Indonesia operations.   In India, UC Browser crossed 100 million monthly active users (MAUs), while UCWeb’s news and content aggregation app UCNews announced that it would start compensating top bloggers, writers on its self-publishing/blogging platform. The company also has tie-ups with Colors TV, Fox Star Studios and other Bollywood production houses for content, and a partnership with Flipkart for browser integration.

The group’s core ecommerce segment posted revenues of RMB 46.57 billion (~$6.7 billion) for the quarter, up 45% YoY from RMB 32.11 billion. The majority (80%) of ecommerce revenue was generated from the company’s domestic operations in China, while the rest came from International retail and wholesale operations. Cloud computing segment posted revenues of RMB 1.76 billion (~$254 million) for the quarter, up 115% YoY from RMB 819 million.

Alibaba mentioned that the total gross merchandise value (GMV) of transactions made via its payment platform Alipay stood at $17.4 billion, of which 82% was generated from mobile transactions. The company claims to process a peak average of 175,000 orders per second via Alipay.

Financial and operational metrics

-Overall Revenue for the quarter was RMB 53.24 billion (~$7.66 billion), an increase of 54% compared to RMB 34.5 billion in the same quarter of 2015.

– Revenue from the China commerce retail business in the quarter was RMB 40.8 billion ($5.87 billion), or 77% of total revenue, and increased 42% from RMB 12,769 million as compared to the same quarter of 2015.

– China commerce wholesale business’ revenue in the quarter was RMB 1.54 billion ($2.18 billion), an increase of 30% compared to RMB 1.16 billion in the same quarter of 2015.

– International commerce wholesale business’ revenue in the quarter was RMB 1.55 billion ($224 million), an increase of 9% compared to RMB 1.43 billion in the same quarter of 2015.

— Mobile MAUs for China retail marketplace segment touched 493 million in December 2016, an increase of 43 million from 450 mobile MAUs in September 2016.

— Net income stood at RMB17.15 billion ($2.47 billion) for the quarter, down 24% QoQ from RMB 22.75 billion ($3.58 billion) in the preceding quarter.

Download: Press release and financials