Friday, November 24, 2017

Amazon has record Xmas despite net income fall

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Pure play e-tailer Amazon has reported record Christmas trading as sales soared 22 per cent to $21.3 billion (£13.5 billion) in its fourth quarter despite a fall in net income, it has been announced.

Buoyed by sales of its Kindle tablet range, operating income in the quarter ended December 31st 2012 rocketed 56 per cent to $405 million, though net income nosedived 45 per cent to $97 million.

Conversely, for the full year, net sales increased 27 per cent to $61.1 billion while operating income plummeted to $676 million, down 22 per cent on the same period in 2011 and net loss over the course of the year stood at $39 million.

While sales figures fell short of analysts expectations, Amazon believes that the unrelenting popularity of its tablets is driving growth and is indicative of a wider trend.

“We‘re now seeing the transition we‘ve been expecting,” Jeff Bezos, Amazon‘s Founder and CEO said of the results.

“After 5 years, eBooks is a multi-billion dollar category for us and growing fast – up approximately 70 per cent last year.

“In contrast, our physical book sales experienced the lowest December growth rate in our 17 years as a book seller, up just 5 per cent.

“We‘re excited and very grateful to our customers for their response to Kindle and our ever expanding ecosystem and selection.”

Amazon‘s shares rebounded by over nine per cent in after-market trading after falling 5.7 per cent yesterday following the announcement, the Financial Times reported.