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Ant Group quarterly profit falls

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May 14, 2024
Illustrations of ants marching in a downward trend line across a grid

Illustration: Sarah Grillo/Axios

Chinese fintech Ant Group's quarterly earnings declined 19% year over year as it seeks to grow its international business following a domestic regulatory crackdown.

Why it matters: The company is betting on global partnerships to prepare for an eventual IPO.

By the numbers: Ant Group contributed 2.57 billion yuan (~$355 million) of profit to Alibaba in the December quarter, translating to about 7.7 billion yuan in profit based on Alibaba's one-third stake in Ant.

  • The profit shortfall compares with a 92% decline in the September quarter, which Alibaba attributed to an "increase in Ant Group's net investment loss."

Flashback: Ant Group paid a nearly $1 billion fine to Chinese regulators last July, settling a years-long crackdown that disrupted its plans for a 2020 IPO.

Between the lines: Ant is betting much of its future growth on Alipay+, which it says now connects 1.5 billion consumer accounts across more than 25 e-wallets worldwide.

  • It claims to reach 88 million merchants across 57 countries and regions.

The big picture: Ant still needs to secure a financial holding company license to revive plans for an IPO.

  • Even if it does, it will probably be valued well below the $300 billion it would have listed at in 2020.
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