Wednesday, April 27, 2011

1st quarter: profits fall but sales rise for Amazon

The American group of online distribution Amazon surprised the market, Tuesday, April 26, with a plunge of 33% of net income in first quarter to 201 million dollars (137 million), against $ 299 million (204 million euros) a year earlier. But Amazon, however, recorded a turnover better than expected, to 9.86 billion dollars (6.72 billion euros), up 38%.

Jeff Bezos, Amazon's president, said the number of new launches have taken place over the past three months: Kindle electronic reading lights matching advertising to lower the purchase cost of new applications for Android and Windows 7 Phone, or Services computing cloud (cloud) of its subsidiary Amazon Web Services (AWS).

But the group of e-commerce must also face competition increasingly fierce, particularly chains like Wal-Mart, which has just strengthened its online presence. MORE INVESTMENTS EXPECTED CFO Tom Szkutak said during a conference call with analysts that Amazon had to invest to support rapid sales growth.

He recalled that the group planned to open nine centers for shipment this year, one of which is already operational, and increase its servers to meet demand in the AWS services, which have also been victims a breakdown of four days in a central Virginia, only resolved Monday. The CFO has finally clarified that the strong growth in sales of physical goods was accompanied by strong growth in sales of digital goods: in particular the program of Kindle e-book records a "tremendous growth" for both Sales and reading lights for those of digital titles.

The action fluctuated in electronic trading after the close of the NYSE to the publication of these results, but lost 2.31% to 178.09 dollars (121.40 euros) to 22 hours GMT.

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