The world’s largest online retailer turned in a much-improved bottom line for the first quarter.
In previous quarters Wall St. analysts chided Amazon for concentrating too much on top-line sales and in over-investing in new technology and content. But in Q1, Amazon, No. 1 in the Internet Retailer Top 500 Guide, is reporting a 115% increase in net income along with a 32% jump in sales.
For the first quarter Amazon generated net income of $111 million on revenue of $3.02 billion vs. net income of $51 million on sales of $2.28 billion in the prior year. Operating income increased 38% to $145 million in the first quarter, compared with $106 million in the first quarter 2006.
North America sales, which represent Amazon’s U.S. and Canadian web sites, were $1.62 billion, up 30% from the first quarter 2006. International sales, which include e-commerce operations in the United Kingdom, Germany, Japan, France and China, rose year-over-year to $1.39 billion, up 35% from Q1 2006.
"We're pleased with our overall strong growth," says Jeff Bezos, founder and CEO of Amazon.com.
Amazon’s global media sales, which include books, music and similar content, grew 26% to $1.99 billion in the first quarter of 2007, compared to $1.58 billion in the first quarter of 2006. Media-generated sales for North America totaled $990 million. The online retailer’s global electronics and other general merchandise revenue grew 48% to $947 million in Q1 and increased to 31% of worldwide net sales compared with 28% in Q1 2006. North American electronics and other general merchandise revenue totaled $564 million.
In Q1, Amazon spent $186 million on new technology and content, an increase of 32.8% from $140 million in Q1 2006.
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