ALIBABA Group Holding Ltd.’s scorching growth may be cooling off — but just ever so slightly.

    The privately held Chinese online marketplace posted 51 percent revenue growth during the July-September quarter compared with a year prior, the lowest rate in three quarters, while margins shrank for the second consecutive period. But it swung from a loss one year ago to US$792 million in net income ahead of what is billed as the biggest initial public offering since Facebook Inc.’s 2012 float.

    The figures were disclosed Tuesday by Yahoo Inc., which holds a 24 percent stake in the Chinese company and reports Alibaba’s results one quarter in arrears as part of its own financial disclosures.

    Alibaba had set a breakneck pace for itself during the first two quarters of 2013, logging top-line growth of 71 percent and 61 percent, respectively.

    Alibaba reported revenue of US$1.78 billion during the September quarter, up from US$1.18 billion.

    Aside from decelerating revenue growth, Alibaba’s margins also shrank from 74 percent to 70 percent, according to Yahoo. But that could suggest the company is priming itself for a public market debut rather than any weakness in its business, said B. Riley analyst Sameet Sinha.

    “It’s a function of them making the investments before the IPO,” Sinha said.

    (SD-Agencies)