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Amazon boosts profit margin with new businesses Friday, 27th July 2012
Amazon.com Inc saw second-quarter revenue rise 29 per cent from last year to USD 12.83 billion, as new businesses helped lift the ecommerce giant’s profit margins.
The retailer’s product revenue, which includes its traditional online business, grew 25 per cent to USD 10.79 billion, while its services revenue, which covers its online marketplace, was up an impressive 57 per cent to USD 2.04 billion.
Gross profit margins were up to 26.1 per cent in the second quarter, and up 24.1 per cent from the year before, according to analyst Scott Tilghman from Caris & Co speaking to Reuters.
Shakes in the world’s largest internet retailer rose 1.6 per cent in after hours trading to USD 223.59.