Major loss for Amazon in second quarter

Major loss for Amazon in second quarter

Amazon has recorded a net loss of $126m (£74m) in the second quarter of 2014, compared to a loss of $7m (£4m) in the second quarter of 2013.

Operating loss for the online retailer, which recently launched its Kindle Unlimited subscription service in the US, stood at $15m (£8.8m) in the second quarter. In the second quarter of 2013, the business had an operating income of $79m (£46m).

The rising losses come alongside increased sales, with Amazon recorded sales in the three month period ended 30th June of $19.34bn (£11.38bn), an increase of 23% on $15.7bn (£9.2bn) in the same period last year. Operating cash flow for Amazon increased 18% from $4.53bn (£2.67bn) to $5.33bn (£3.14bn) for the year ended 30th June 2014.

Amazon founder and c.e.o. Jeff Bezos did not address the loss in a statement made alongside the results. He said: "We continue working hard on making the Amazon customer experience better and better. We’ve recently introduced Sunday delivery coverage to 25% of the US population, launched European cross-border Two-Day Delivery for Prime, launched Prime Music with over one million songs, created three original kids TV series, added world-class parental controls to Fire TV with FreeTime, and launched Kindle Unlimited, an e-book subscription service."

Today also marks the day when Fire phone will go on sale in the US, though the handsets have met with mainly critical reviews.

Amazon is currently embroiled in a terms dispute with Hachette Book Group USA (HBG), which has seen the retailer withdraw pre-order buttons and delay shipments of certain Hachette titles. In a recent move, Amazon offered to restock all HBG titles, and pay all proceeds earned from e-book sales to a literacy charity while negotiations were ongoing.

Some authors have condemned Amazon over the moves, while several prominent independent authors have backed the retailer.