Alibaba Burns More Money on Entertainment Push

New businesses' operating loss margin on the rise
Data: Alibaba, Bloomberg Gadfly; graphic by Bloomberg Businessweek

Alibaba Group Holding Ltd.’s core commerce business fueled the company’s market-beating results in the June quarter, while Jack Ma’s push to build an entertainment business continues to be the chief drain on its finances. Operating expenses in that unit equaled 41 percent of the amount it spends on core commerce, widening the operating loss margin to 83 percent, according to calculations by Bloomberg Gadfly’s Tim Culpan. And there’s no sign of that abating, with Alibaba itself foreshadowing more expenditure to come.

    Before it's here, it's on the Bloomberg Terminal.