Amazon reports net loss in second-quarter

The online retailer improves sales of digital products.

New Statesman
Jeff Bezos, CEO of Amazon.com. Credit: Getty Images.

Online retailer Amazon.com has posted a net loss of $7m, or $0.02 per diluted share, for the second-quarter ended 30 June 2013, compared to a net income of $7m, or $0.01 per diluted share, for the same period last year.

However, net sales grew by 22 per cent to $15.7bn (2012: $12.83bn), while operating income declined to 26 per cent to $79m (2012: $107m).

The company said its Kindle FreeTime Unlimited service has added more than 1,000 books, games, educational apps, movies and TV shows, kids’ titles from Disney, Warner Bros., interactive entertainment, electronic arts and more, since its launch.

Jeff Bezos, founder and CEO of Amazon.com, said: “We’re so grateful to our customers for their response to Kindle devices and our digital ecosystem. This past quarter, our top 10 selling items worldwide were all digital products – Kindles, Kindle Fire HDs, accessories and digital content.

“The Kindle service keeps getting better. The Kindle Store now offers millions of titles including more than 350,000 exclusives that you won’t find anywhere else. Prime Instant Video has surpassed 40,000 titles, including many premium exclusives like Downton Abbey and Under the Dome. And we’ve added more than a thousand books, games, educational apps, movies and TV shows to Kindle FreeTime Unlimited, bringing together in one place all the types of content kids and parents love.”

For the third-quarter of 2013, the company expects to generate net sales of between $15.45bn and $17.15bn.