Amazon Reports Record $513m Profits in Q1

Amazon
Amazon has reported profits $513m (£352) for Q1 2016, the highest in the companys history (or at least, since its 1997 IPO). By comparison, in Q1 2015, it reported losses of £57m.

Those profits came off the back of a 28 per cent year-on-year increase in revenues, up to $29.1bn – an especially strong first quarter, but paling in comparison to its Q4 peaks, driven by Christmas sales ($35.8bn in Q4 2015).

Even with lower revenues, though, Amazon managed to significantly better the previous quarters profits of $482m – at the time, a record for the company – but was remarkably quiet on the matter in its earnings report. No surprise, perhaps, given the eCommerce giants well-documented reluctance to make a profit.

CEO Jeff Bezos spoke about Amazons approach to profit in a 2014 interview with Business Insider: “The reality is that Amazon is a collection of several businesses and initiatives, and we have some very significant, very profitable, more established businesses that are free cash flow-generating very significantly,” he said. “And then fortunately, the way I think about it, we have lots of opportunities to invest in new initiatives, and we take advantage of those opportunities.”