Amazon.com Inc, the world’s largest Internet retailer, posted profit and sales that beat analysts’ estimates and said revenue growth may accelerate this quarter as consumers start spending more following the recession.
Net income in the fourth quarter jumped 71 percent to US$384 million, or US$0.85 a share, beating estimates. Sales also topped estimates, rising 42 percent to US$9.52 billion.
Sales could rise as much as 43 percent to US$7 billion in the first quarter, more than last year’s 18 percent, the Seattle-based company said in a statement on Thursday.
PHOTO: REUTERS
Sales from international operations, including those in the UK, Germany, Japan, France and China, rose 48 percent to US$4.56 billion, accounting for 48 percent of revenue, Amazon.com said. Global media sales, which includes books and digital music, advanced 29 percent to US$4.68 billion in the quarter. Before foreign exchange fluctuations, the growth rate was 23 percent.
The company’s growth in new categories such as patio furniture and downloadable films, TV and games has allowed it to get better deals from vendors, which helped boost profitability, chief financial officer Tom Szkutak said.
“Some of the categories we started in just a few years ago are becoming more meaningful,” he said on a conference call.
Apple Inc and Sony Corp are creating new competition for Amazon.com’s Kindle, which sells for US$259 and US$489. Apple’s iPad, which can display books, surf the Web and show video, starts at US$499. Sony introduced a touch-screen reader in August for US$299.
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