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Business News Retail
Amazon sees revenues rise but profits fall
By Chris Cooke | Published on Monday 29 April 2013
Amazon saw its revenues rise 22% in the first quarter of the year, though profits fell 37% year-on-year, from $130 million in 2012 to $82 million. Though, interestingly, the investment community was pleased with the profits figure, which was better than expected, but a little disappointed at the revenues, which were slightly less than anticipated.
The slip in profits is mainly down to Amazon’s recent investments in the form of acquisitions, new distribution centres, further global expansion, and the development of new digital content services, an area which is becoming an increasingly important part of the web giant’s business. On-demand film and TV services are at the heart of that growth, though digital music is also likely to be part of the mix.
