Amazon Reported Higher Than Expected Revenues
Sales rose in North America, its biggest market, demonstrating the success of the fast delivery service Amazon Prime as the company spends big on film and TV content.
Sales for Amazon increased 28pc to $29.1bn (£20bn) in the three months to March 31, the company said. Operating income was $1.1bn in the first quarter, up from $255m at the same stage last year.
Amazon’s shares jumped 11pc higher in extended trading on Thursday night.
Amazon’s cloud computing unit, Amazon Web Services, saw revenues increase by 64pc to $2.57bn, and operating income soared by 161pc to $716m in the first quarter. Amazon Web Services now contributes about 40pc of group total operating income.
“Amazon devices are the top selling products on Amazon, and customers purchased more than twice as many Fire tablets than first quarter last year,” said Jeff Bezos, founder and CEO of Amazon.
Amazon has made a big push into producing film and TV content, splashing out $160m to secure the services of the ex-Top Gear team Jeremy Clarkson, Richard Hammon and James May
Amazon said it expected net sales to grow between 21pc and 32pc in the current quarter to between $28bn and $30.5bn.
Amazon’s shares were trading at $677 in extended trading.