Amazon reports strong growth

ONLINE retail titan Amazon has reported a 68 per cent leap in worldwide profits for the first quarter of the year after double-digit sales growth in the US and at its international arm.
By The Newsroom
Published 23rd Apr 2010, 10:37 BST

The release of the latest Twilight Saga blockbuster movie on DVD led the best seller list in the UK, contributing to a 45 per cent hike in sales across Amazon's international arm - up 37 per cent with currency effects stripped out.

Amazon notched up net income of 195m across the group, up from 115m a year earlier.

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The UK saw strong demand for The Twilight Saga: New Moon DVD featuring Hollywood heartthrob Robert Pattinson, but other top sellers also included author Stieg Larsson's trilogy of novels, including The Girl with the Dragon Tattoo, and Oscar-winning film The Hurt Locker.

Amazon's global net sales grew 46 per cent to 4.7bn, led by a 47 per cent leap in the US and Canada.

Its first quarter earnings were better than most analysts were expecting, but the firm's outlook for the second quarter suggested sales growth would slow.

For the current quarter, Amazon expects revenues of between 4bn to 4.4bn, which would be an increase of up to 41 per cent year-on-year.

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Revenue from books, CDs, DVDs and other media grew 26 per cent, while electronics and other "general merchandise" revenue increased 72 per cent.

Jeff Bezos, founder and chief executive of Amazon, said the group remains "heads-down focused on customers".

Related topics:AmazonHollywoodCanada