March 19 (Reuters) - Alibaba on Thursday reported a 1.7% rise in third-quarter ​revenue that missed analysts' estimates, as heavy spending ‌on one-hour delivery and promotions during the peak shopping season did not translate into a surge in demand.

Alibaba's U.S.-listed shares fell ​more than 5% in premarket trading.

China's largest e-commerce company ​booked revenue of 284.84 billion yuan ($41.28 billion) for ⁠the three months through December, compared with estimates ​of a 3.7% rise, or 290.7 billion yuan, according to ​an average of 21 analyst estimates compiled by LSEG.

Its net income fell 66.3% to 15.63 billion yuan.

A prolonged property crisis, coupled ​with concerns about income stability, continued to weigh on ​consumer sentiment, limiting spending even during traditional high seasons for spending.

Singles' ‌Day ⁠sales extended to over a month of promotions but saw muted enthusiasm. Retailers ramped up discounts and subsidies to encourage spending, but cautious consumers and year-round deals ​diluted the event's ​traditional sales ⁠surge.

Retailers, including Alibaba and JD.com, intensified competition during the quarter, spending heavily on discounts ​and faster delivery to capture market share ​from ⁠food-delivery leader Meituan, pressuring profit margins.

In the budget segment, Alibaba continued to face stiff competition from PDD Holdings' Pinduoduo ⁠and ​ByteDance-owned Douyin, which often offer deep ​discounts and year-round promotions to attract price-sensitive consumers.

($1 = 6.9003 Chinese yuan ​renminbi)