Amazon Posts 38% Sales Gain While Net Income Soars in Q2

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Amazon July 26 reported second-quarter (ended June 30) online “stores” sales of $27.1 billion, up 14% from ecommerce revenue of $23.7 billion during the previous fiscal period.

The ecommerce behemoth says online stores revenue includes product sales, physical and digital media, such as books, music, videos, games, and software. This includes digital products sold on a transactional basis such as Amazon Instant Video.

Digital subscriptions that provide Prime members unlimited viewing (Prime Video) or usage rights from third parties (via Amazon Channels) generated $3.4 billion, up 57% from revenue of $2.1 billion last year.

Total North American revenue, which includes third-party sellers, topped $32.1 billion, up 44% from $22.3 billion during the previous-year period. Operating income topped $1.8 billion from $436 million last year.

International revenue increased 27% to $14.6 billion from $11.8 billion last year. Operating loss decreased to $494 million from an operating loss of $724 million last year.

Amazon Web Services generated operating income of $1.6 billion, up nearly 75% from $916 million last year. Revenue topped $6.1 billion, up 48% from $4.1 billion last year.

Home entertainment-related highlights during the quarter:

  • Amazon and Best Buy released the first of the next generation Fire TV Edition smart TVs to customers in the U.S. The new Toshiba 4K TVs are now available for purchase in Best Buy stores and online at bestbuy.com and amazon.com, with additional models coming later this year to customers in the U.S. and Canada.
  • Amazon announced the Fire TV Cube, a 4K Ultra HD streaming media player with Alexa that allows customers to control the TV with their voice. Fire TV Cube uses multi-directional infrared technology, cloud-based protocols, and HDMI CEC to control compatible TVs, sound bars, cable and satellite boxes, and AV receivers.
  • Amazon introduced the Fire HD 10 Kids Edition, which comes bundled with a Fire HD 10 tablet, a year of Amazon FreeTime Unlimited, a kid-proof case, and a two-year worry-free guarantee. Additionally, Amazon FreeTime Unlimited is now available on iOS devices, offering kids access to over 10,000 age-appropriate books, movies, and TV shows.
  • Amazon announced Show Mode and the Show Mode Charging Dock for Fire HD 8 and Fire HD 10 tablets. Show Mode offers a hands-free Alexa experience with full screen visual responses. The Show Mode Charging Dock automatically switches Fire HD tablets into Show Mode and holds the device at an adjustable angle while charging.
  • Amazon Prime Video received 22 Emmy nominations for its original programming, including 14 nominations for comedy series “The Marvelous Mrs. Maisel.”
  • Prime Video and the National Football League renewed their streaming partnership for Thursday Night Football, which will be available globally during the 2018 and 2019 seasons to over 100 million Prime members. Additionally, Prime Video and the Premier League announced that live and exclusive Premier League football matches will be available in the U.K.beginning in 2019 at no extra cost to Prime members.
  • Prime Video debuted the second season of the original series “Goliath,” starring Billy Bob Thornton in his Golden Globe-winning role. Prime Video continues to launch local original series around the world, including “Comicstaan” in India, an unscripted series that looks to discover India’s next big comedic sensation; “Diablo Guardián” in Mexico, based on an award-winning novel of the same name; and season two of “The Bachelor Japan.”
  • Prime Video Channels is now available to Prime members in Japan with more than 30 channels including J Sports, BBC World News, and Nikkei  CNBC Plus.
  • The fourth annual Prime Day was Amazon’s biggest global shopping event ever, welcoming more new Prime members on July 16th than any other previous day in Amazon history. Members purchased more than 100 million products, and the best-selling items worldwide were the Fire TV Stick with Alexa Voice Remote and Echo Dot. Small and medium-sized businesses selling on Amazon exceeded $1.5 billion in sales during the Prime Day event. Additionally, Prime members saved millions of dollars at Whole Foods Market with Prime Day deals.

 

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