News Column

Technology: Amazon makes pounds 74m loss despite rise in sales

July 25, 2014

Dominic Rushe

Amazon has reported a rise in sales but posted a bigger-than-expected $126m (pounds 74m) loss for its second quarter, sending shares sharply lower in after-hours trading. Revenue rose 23% to $19.34bn but losses increased as the firm spent heavily in a bid to expand its business with its first smartphone, the Fire Phone - which goes on sale in the US today - and to expand new services including grocery delivery and video streaming.

"We continue working hard on making the Amazon customer experience better and better," said Amazon's chief executive officer, Jeff Bezos.

Shares of Amazon dipped 10%, to $358.61, in after-hours trading as the company said it expected further losses of up to $810m in the upcoming quarter - compared to a $25m loss in the third quarter last year.

The company has long argued it is focusing on building a business for the long-term and shown little concern about losses. Along with the phone and groceries, it introduced Zocalo, a document storage and sharing service, and a programme to give readers access to as many ebooks as they want for a monthly fee.

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Source: Guardian (UK)

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