Amazon’s second quarter profits have more than tripled thanks to a combination of increased sales and a reduction in technology spending.
The company’s share price rose by 21% yesterday in response to the news, with Amazon raising its full year income forecasts.
Amazon’s total sales for the second quarter, normally a relatively quiet period for retailers, increased by 35% $2.89bn (£1.4bn). Q2 profits reached $78m (£38m), compared with $22m (£10.7m) for the same period in 2006.
The company posted a 32% rise in sales in the first quarter of 2007 to just over $3bn (£1.5bn).
Sales in North America jumped 38%, the highest growth rate for six years, while revenue from the company’s UK, German, Chinese, French and Japanese sites increased by 31%, to $1.2bn (£584m).
Sales of electronics, jewellery and general merchandise climbed 55%, while books, DVDs and other media sales increased 27%.
CEO Jeff Bezos said the increase in profits was down to low prices and the growth in users of its Amazon Prime subscription service, as well as reduced expenditure on its websites.