Revenue up in Amazon's third quarter

Revenue up in Amazon's third quarter

Amazon’s third quarter revenue has grown 24% to $17.09bn  (£10.5bn) but the retailer is still making a loss.

The company revealed its third quarter results last night (24th October), at which point its share price rose by 8% to $361 (£222.70) after trading.

Amazon made a net loss of $41m (£25.29m) in the third quarter, but the losses have narrowed from a year earlier, when they were $274m (£169m).

Bestsellers for in the period were “dominated” by kindle books and video games, the retailer said. It singled out Kindle Direct Publishing author Tracy Bloom, who appeared “twice” in the bestseller list according to the retailer, with her titles Single Woman Seeks Revenge and No-one Ever Has Sex on a Tuesday.

Meanwhile Christopher North, Amazon UK’s managing director, has defended the company’s investment in the UK following heavy criticism over the amount of corporation tax it pays in the UK in comparison to its high sales. Speaking in the Daily Telegraph, North said: “What I am convinced of is that what we are doing is really good for the UK.”

He said Amazon had invested more than £1bn in the country, paid delivery firms £1bn over the past five years and paid £500m in VAT to the Treasury in the past year. North said: “There is our direct investment in job creation in the UK, which amounts to billions of pounds, many thousands of jobs and will continue to grow. But there are also the indirect benefits – whether we are purchasing £1bn of delivery services from suppliers like Royal Mail, whether it is indirect job creation because of the drivers who are being hired at our regional delivery partners. I don’t think we have gone out there and bragged about those things, we are certainly very proud of them.” He added that Amazon was building platforms which “indirectly” benefitted the UK economy and helped businesses sell and export goods through its third party marketplace facility.

However, North still maintained Amazon’s European headquarters were based in Luxembourg for reasons other than tax avoidance, despite the country attracting the lowest rate of VAT on e-books in the European Union at 3%. North said: “I don’t think it would be possible to offer 100m distinct products to our customers in the UK if we had only set up a business in the UK. I think it is only the structure of our business as a single European business that makes that possible. What we have said on tax has been very clear and very consistent, which is that we have followed all of the laws that apply to us in every jurisdiction on tax and we will continue to do so.”