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Increased Q2 Costs Slash Amazon Profits by 58%

News, 27 July 2006


SEATTLE, WASHINGTON: Amazon.com, the globe's largest online shopping company, saw second quarter profits slump as it spent on new technology and invested in its toy business.

Net income fell 58% to $22 million (€17.49m; £11.95m) in the three months to 30 June, from $52m a year earlier. Sales rose 22% in the quarter to $2.14 billion.

Amazon has increased spending by offering deals such as free delivery as it strives to remain ahead of rivals.