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ANT Group’s Profit Rebounds 193% in June Quarter
ANT Group, the fintech company, has reported a nearly 193% growth in profit in the June quarter, reversing a year-long decline. The company has regained its footing from a government crackdown and is making significant strides in its overseas operations.
Financial Results
Hangzhou-based Ant contributed nearly 2.48 billion yuan (S$460 million) of profit to Alibaba Group Holding. Based on Alibaba’s one-third stake in Ant, that translates to an estimated 7.5 billion yuan in profit for the three months ended in June, according to Bloomberg calculations based on the listed company’s disclosures.
The results compared with a 10% drop in earnings for the previous three months. Its results lag a quarter behind Alibaba’s. Ant declined to comment in an emailed statement.
Business Overhauls
Ant made broad overhauls to its business in March, setting up independent boards for international, database and digital technology units to pave the way for future spinoffs. The company has been expanding its overseas operations to offset slowing growth at home.
Crackdown and Restructuring
The moves came after billionaire Jack Ma gave up control of Ant last year. China wrapped up its crackdown on the once high-flying Internet sector by slapping more than US$1 billion in fines on Ant and Tencent Holdings in July last year.
International Expansion
Ant raised US$6.5 billion in loans to refinance an offshore credit line of the same size, people familiar with the matter said in September. The company is building its treasury management platform known as Whale, underpinned by blockchain technology, and has worked with Singapore’s DBS Group Holdings to start a treasury token pilot project.
Domestic Developments
Domestically, Ant is considering selling its stake in Baihang Credit, a personal credit reporting firm, as it awaits a licence approval for a similar entity known as Qiantang, Bloomberg reported in June. The company proposed buying back as much as 7.6% of its shares last year, giving investors such as Fidelity Investments and T Rowe Price Group an opportunity to sell some stock.
Conclusion
ANT Group’s rebound in profit is a significant development for the fintech company, which has been working to regain its footing after a year-long decline. The company’s expansion into overseas markets and its focus on digital technologies are key drivers of its growth.
FAQs
Q: What is ANT Group’s profit growth in the June quarter?
A: ANT Group’s profit nearly grew 193% in the June quarter.
Q: How much profit did ANT Group contribute to Alibaba Group Holding?
A: ANT Group contributed nearly 2.48 billion yuan (S$460 million) of profit to Alibaba Group Holding.
Q: What is ANT Group’s valuation after its share repurchase plan?
A: ANT Group’s valuation was trimmed to about US$79 billion after its share repurchase plan.
Q: What is ANT Group’s international business focus?
A: ANT Group is building its treasury management platform known as Whale, underpinned by blockchain technology, and has worked with Singapore’s DBS Group Holdings to start a treasury token pilot project.
