Amazon triples profits in first quarter as revenue soars

Amazon's net profits more than tripled in the first quarter of 2021, rising to $8.1bn (£5.8bn), as global sales shot up 44%.

A financial report by the online giant showed net income was up 224% in the three months to 31st March 2021 from $2.5bn (£1.8bn) in 2020's first quarter. Net sales hit $108.5bn (£78bn) compared to $75.5bn (£54bn) in the same period last year.

Sales in North America reached $64.4bn (£46bn), with operating income of $3.5bn (£2.5bn). Internationally the company had sales of $30.6bn (£22bn) , with an operating income of $1.3bn (£0.9bn).

In forward guidance, the company said net sales were expected to be between $110bn (£79bn) and $116bn (£83.4bn) in the second quarter, a growth of 24%-30% year on year. Operating income is projected to reach from $4.5bn (£3.2bn) to $8bn (£5.8bn) but the guidance also assumes around $1.5bn of costs related to Covid-19.

C.e.o. Jeff Bezos, who is stepping down in the summer to be succeeded by Amazon Web Services (AWS) chief executive Andy Jassy, chose to highlight the success of the company's Prime streaming service and AWS.

He said: “As Prime Video turns 10, over 175 million Prime members have streamed shows and movies in the past year, and streaming hours are up more than 70% year over year."

Bezos added: “In just 15 years, AWS has become a $54bn annual sales run rate business competing against the world’s largest technology companies, and its growth is accelerating—up 32% year over year. Companies from Airbnb to McDonald’s to Volkswagen come to AWS because we offer what is by far the broadest set of tools and services available, and we continue to invent relentlessly on their behalf. We love Prime Video and AWS, and we’re proud to have them in the family.”