Amazon has managed to grow its turnover tremendously in the third quarter. The 24 % increase was larger than expected, but failed to lift the online retailer out of the red. Amazon still has to take a loss of 41 million dollars (30 million euro).
Unexpectedly large turnover
A 17.09 billion dollar (12.4 billion euro) turnover in the third quarter of 2013 was quite a bit higher than analyst expectations of 16.69 billion dollars (12.1 billion euro). The loss incurred was lower than expected and more importantly, a whole lot better than the 274 million dollar (199 million euro) drumming Amazon received last year.
Amazon expects the growth to continue into the fourth quarter: this festive, and financially important, quarter should result in a 23.5 to 26.5 billion dollar turnover (17 to 19 billion euro), according to Amazon. Analysts are expecting a 25.9 billion dollar turnover (18.8 billion euro).
No more negative quarters?
It is the third quarter in a row Amazon has had to endure a net loss, but it is working on solution, Amazon has stated. An increase in the amount of Kindle products and its cloud services should help, while additional logistics centres should decrease shipment costs. These centres should also help Amazon lowering costs as they use more efficient robots.
The stock market did not seem to have an issue with Amazon’s losses, because the revelation of the numbers resulted in a 9.6 % spike for Amazon’s share on the New York Stock Exchange.
(Translated by Gary Peeters)