Amazon posts best ever quarter in terms of revenue
E-commerce behemoth Amazon reported a quarterly profit of almost $2bn as it reeled in millions of new customers to its Prime fast-shipping club during the holiday season.
Amazon.Com Inc.
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13:09 24/04/24
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Amazon, the world's largest online retailer, posted a net income from its fourth quarter of $1.86bn, or $3.75 per share, after receiving a provisional boost of $789m as a result of the US Republican tax bill passed in December. Analysts had, on average, forecast EPS in the realm of $1.85 per share.
In the three months leading to 31 December, Amazon returned its biggest-ever quarter in terms of revenue as sales rose 38% to $60.5bn during the period, beating estimates.
Revenues are expected to rise again in Amazon's first trading quarter of the new year after the company chose to raise the fee on its month-to-month Prime plans, affecting almost 30% of its subscribers.
After 4m people signed up Prime in just one week during the quarter, revenue from subscription leapt 49% to $3.2bn.
Amazon also noted that price cuts at Whole Foods, which it acquired for $13.7bn in 2017, boosted grocery sales. Advertising and other revenue rose 62% to $1.74bn.
Brian Olsavsky, Amazon's chief financial officer, said on Thursday that advertising was "a key contributor" to the Seattle-based businesses growing profit margin.
Earlier this week Amazon was in the news as it teamed up on a healthcare joint venture with JP Morgan and Warren Buffett's Berkshire Hathaway to cut sickness insurance costs for their employees. The trio said they would bring their "scale and complementary expertise to this long-term effort" through an independent company "free from profit-making incentives and constraints".
As of 1100 GMT, shares had gained 5.51% in pre-market trading to $1,466.56 each.