The bottom line on Amazon: Higher first quarter net income
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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