Amazon's sales up 43% in first quarter

Amazon's sales up 43% in first quarter

Amazon has reported a 43% rise in sales to $51bn (£36.9bn) for the first three months of 2018 ending 31st March.

The net sales increase was up from $35.7bn (£25.8bn) in the first quarter 2017. Meanwhile net income was $1.6bn (£1.16bn) in the first quarter, or $3.27 a share, compared with net income of $724bn, or $1.48 per share, in first quarter 2017.

The company said that excluding the $1.6bn favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 39% compared with first quarter 2017.

Operating income increased 92% to $1.9bn in the first quarter, compared with operating income of $1bn in the first quarter of 2017.

Net income was $1.6 billion in the first quarter, or $3.27 per diluted share, compared with net income of $724 million, or $1.48 per diluted share, in first quarter 2017.

Jeff Bezos, Amazon founder and c.e.o, said: “Amazon Web Service (AWS) had the unusual advantage of a seven-year head start before facing like-minded competition, and the team has never slowed down. As a result, the AWS services are by far the most evolved and most functionality-rich. AWS lets developers do more and be nimbler, and it continues to get even better every day. That’s why you’re seeing this remarkable acceleration in AWS growth, now for two quarters in a row.”

The company has also provided second quarter 2018 guidance. Net sales are expected to be between $51bn and $54bn, or to grow between 34% and 42% compared with the second quarter of 2017. Operating income is expected to be between $1.1bn and $1.9bn, compared with $628m in second quarter 2017.