Ant Group Co’s profit rose an estimated 39% in the June quarter, attributed to a gain in investments as billionaire Jack Ma’s fintech giant grapples with the impact of China’s rapidly shifting rules for private enterprise.
The company contributed 6.5 billion yuan ($1.38 billion) to Alibaba Group Holding’s earnings, a filing showed Thursday. Based on Alibaba’s one-third stake in Ant, that translates to an estimated 19.71 billion yuan in profit, up 39% from a year earlier. Ant’s earnings lag one quarter behind Alibaba’s. Ant declined to comment.
“The year-over-year increase in share of profit of Ant Group was mainly due to an increase in net gains arising from fair value changes in the investments held by Ant Group,” Alibaba said in its statement.