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Amazon’s first quarterly loss in more than five years Friday, 26th October 2012
Photo credit: Amazon.com Inc
Amazon.com Inc reported on its first quarterly net loss since 2003, as the company fought a battle on multiple fronts to stay afloat amid Europe’s economic slowdown.
Heavy investment in its e-reader technology, an impairment charge for Amazon’s Living Social and a weak consumer confidence across its key markets left Amazon with third-quarter net loss of USD 274 million, or 60 cents a share.
This compares with a net income of USD 63 million, or 14 cents a share in the third quarter of 2011, and according to Thomson Reuters data is the company’s first reported net loss since the penultimate quarter of 2003.
Revenue in North America rose USD 7.88 billion, up 33 per cent from a year before, while international sales including Europe, totalled USD 5.92 billion, up 20 per cent from 2011’s third quarter.
Amazon was expected to lose 8 cents a share for the quarter, on revenue of USD 13.9 billion, according to Thomson Reuters I/B/E/S.
As the world’s largest internet retailer, Amazon spent USD 1.51 billion on shipping and warehouses in the third quarter, up from USD 1.12 billion a year before. Technology and content spending reached USD 1.19 billion, up from USD 769 million in the same period for 2011.
Amazon chief financial officer Tom Szkutak on Thursday said the company will continue investing heavily in technology, infrastructure and digital content.