A growth in the sales of its Kindle e-reader devices contributed to a rapid rise in trade for e-commerce giant Amazon during its second quarter, results today reveal.
For the three months ending June 30th 2011 its worldwide net sales grew by 51 per cent year-on-year to total $9.91 billion (£6.03 billion), although around $477 million can be attributed to favourable changes in foreign exchanges which if extracted mean trading was up 44 per cent in comparison to the second quarter 2010.
Operating income fell during the period however, from $270 million last year to $210 million, and net income was down eight per cent due to increased investment activity.
In the UK alone Amazon has bought one of its direct competitors, The Book Depository, during the period and it has also been significantly increasing its distribution capabilities in Scotland.
Commenting on the results, Amazon founder and CEO Jeff Bezos, argued that the popularity of its latest Kindle was important to the e-tailer’s recent success.
“Low prices, expanding selection, fast delivery and innovation are driving the fastest growth we’ve seen in over a decade,” Bezos said.
“Kindle 3G with Special Offers has quickly become our bestselling Kindle at only $139. Customers love the convenience of a 3G reader - no hunting for or paying for Wi-Fi hotspots.
“Amazon picks up the tab for the 3G wireless, so you have no monthly payments or annual contracts.”
International sales also grew 51 per cent during the quarter although once favourable exchange rates are accounted for this was cut to a 36 per cent boost.