Cloud rains down growth for Amazon; Subscription services increase quarterly sales to PS42bn.
Byline: Report by Jennifer Green email@example.com
CLOUD services and subscription-based products such as Prime helped Amazon achieve strong quarterly results once again, with net sales up 17 per cent to PS42.6 billion.
The company's growing cloud business - Amazon Web Services - delivered the biggest area of growth in the three months to the end of March, with net sales at PS6bn, up 41 per cent year over year.
Operating income for Amazon Web Services came in at PS1.7bn.
Amazon, which employs around 1,500 at its 750,000 sq ft fulfilment centre at Rugeley, said that net income increased to PS2.8bn in the first quarter of 2019.
That was more than double the same period last year when it totalled PS1.2bn.
Subscription services, which include everything from Prime to audiobooks, also delivered the biggest percentage hike, standing at PS3.3bn in net sales, up 40 per cent from last year's PS2.4bn.
Advertising Online store net sales only increased 10 per cent compared with the previous year but still provided the lion's share at PS22.8bn.
Its smaller physical store business proved a little less fruitful, only increasing one per cent to a total of PS3.3bn.
Elsewhere, advertising also contributed a smaller amount at PS2.1bn but still managed a 34 per cent rise on this time last year.
Chief executive Jeff Bezos reacted by talking about Amazon's commitment to inventing new products and services.
"Our passion for invention led us to create Amazon Future Engineer so we could help young people like Leo from underrepresented groups and underserved communities across the country," Mr Bezos said.
"In addition to 100 college scholarships a year, we're funding computer science classes in 1,000 high schools and counting, and inspiring younger kids to explore coding through coding camps and after-school programmes.
"We love this programme, and we can't wait to see what Leo and his fellow future engineers invent."