Alibaba Group’s net income plunged 75 percent in the June quarter, while operating income—profit from its core business operations—fell 57 percent as the Chinese technology giant continued heavy spending on artificial intelligence and computing infrastructure.
Net income fell to 10.4 billion yuan ($1.54 billion) for the three months ended June 30, from 42.4 billion yuan ($6.25 billion) a year earlier, according to Alibaba’s quarterly results.
Operating income dropped to 15.2 billion yuan ($2.24 billion), from about 35 billion yuan ($5.16 billion) a year earlier.
Alibaba’s adjusted operating profit, a company-defined measure known as adjusted EBITA, fell 30 percent to 27.3 billion yuan ($4.02 billion). Non-GAAP net income, which excludes certain costs and gains under Alibaba’s accounting definition, fell 38 percent to 20.7 billion yuan ($3.05 billion)….