Date
20 October 2017
Strong North America sales and cloud computing growth have helped Amazon post a profit for the second straight quarter. Photo: Bloomberg
Strong North America sales and cloud computing growth have helped Amazon post a profit for the second straight quarter. Photo: Bloomberg

Amazon posts second straight quarterly profit

E-commerce giant Amazon.com Inc on Thursday reported a profit for the second straight quarter on the back of higher North America sales and growth in cloud computing business.

The company posted a profit of US$79 million, or 17 cents per share, for the three months ended September, against a loss of US$437 million, or 95 cents a share, in the same period last year.

Total net sales rose 23.2 percent to US$25.36 billion. Analysts had on average expected a loss of 13 cents per share on revenue of US$24.91 billion, according to Reuters.

Sales in North America rose 28.3 percent to US$15.01 billion in the third quarter on robust Prime Day sales and demand for electronics and general merchandise.

Meanwhile, net sales from Amazon Web Services, which has more than one million active customers in 190 countries, rose more than 78 percent in the quarter to US$2.09 billion, the report said.

Amazon, which has historically struggled with profitability while spending to expand beyond its core online marketplace offerings, has reined in costs, helping it post the surprise profit, Reuters noted.

Chief Financial Officer Brian Olsavsky was quoted as saying in a conference call that the balance between investing and cost controls “will be lumpy over time.”

For the current holiday shopping quarter, Amazon forecast net sales growth in the range of 14 to 25 percent.

Following the strong third quarter results, which were announced after US market close, Amazon’s shares surged as much as 11 percent.

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RC

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