Amazon doubles profit despite lower e-commerce growth

In the first quarter of 2019, Amazon has more than doubled its net profit – significantly outperforming analysts’ expectations. The online giant sees its revenue from subscriptions and web services grow by 40 %, meaning sales in its online stores are now worth only half of the company’s total turnover.

Services

Amazon’s total turnover went up 17 % to 59.7 billion dollars (53.5 billion euros) as its web services branch (the cloud) saw a 41 % hike to 7.7 billion and subscription services went up 40 % to 11.1 billion dollars. Combined, all the service branches add up to 25.4 billion dollars (23 billion euros). The company’s own online stores were ‘only’ good for a 29.4 billion dollar turnover thanks to a 10 % growth, meaning they are now just worth half of the company’s total turnover.

Another striking figure is Amazon’s net profit, that more than doubled to 3,6 billion dollars (3 billion euros). This result stunned financial analysts, who had made an average forecast of 2,35 billion dollars (2 billion euros).

Amazon is positive for the second quarter, again aiming for an operational profit of 3,6 billion dollars (3 billion euros). The company also made headlines by suggesting it wants to decrease delivery time for Prime parcels from two days to just one.