Amazon net profit up, Kindle sales praised

Image courtesy of E-Commerce Times

The Seattle, Washington-based Amazon said net profit rose to US$177 million in the first quarter, or 41 cents per share, from $143 million, or 34 cents per share, in the same quarter last year.

Amazon's first quarter results exceeded the expectations of Wall Street analysts, who had been expecting 31 cents per share.

Revenue increased 18% to $4,89 billion in the quarter and the company said it expected revenue to grow by between 6% and 17% in the current quarter to between $4,3 billion and $4,75 billion.

Amazon released a new version of the Kindle, the Kindle 2, during the first quarter and Jeff Bezos, the founder and chief executive of the company, said Kindle sales had "exceeded our most optimistic expectations."

As previously, Amazon did not provide sales figures for the electronic book readers.

Amazon said North America sales rose 21% to $2,58 billion in the quarter while sales from sites in Britain, Germany, Japan, France and China rose 15% to $2,31 billion.

By sector, it said media sales, which includes books and other items, grew seven percent to $2,72 billion.

Electronics and other general merchandise sales grew 38% to $2,05 billion.

Amazon shares lost 4.60% to $76.90 in after-hours electronic trading in New York following the release of the results.

Source: AFP

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