Amazon.com has posted Q1 results which, according to chief financial officer Warren Jenson, keep the e-tailer “right on track” for operating profitability in the fourth quarter.
Net losses in Q1, despite restructuring charges of $114 million, fell from $308m last year to $234m – even less than the improved forecast of $255m announced earlier this month [WAMN: 10-Apr-01]. However, the quarterly consumption of cash rose from $320m in 2000 to $407m.
A notable feature of the figures was the strong performance of Amazon’s partnerships with other businesses. Alliances with traditional retailers such as Toys R Us and online sellers such as Drugstore.com produced profit margins of 67%, compared to 23% among the group’s other operations. Such deals generated $42m in revenues over the first quarter, with full-year sales forecast at over $150m.
Commented Amazon chief executive Jeff Bezos: “It has become increasingly clear over the past year that our platform is valuable to other companies.”
Meanwhile, sales over the quarter rose by 22% to $700m. But growth in Amazon’s core books, music and video business stood at only 2%.
News source: Financial Times