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Amazon announces ‘record breaking’ profits for Q2

Amazon has announced that during its second quarter ending June 30, 2018, its net sales increased by almost 40% to £39.6bn.

Amazon also announced that net income reached $2.5bn (£1.9bn) breaking the $2bn barrier for the first time. Operating income increased to $3bn, compared with operating income of $628m (£479m) in second quarter 2017.

The company attributed the record breaking profits to a rise in online sales and demand for its cloud services.

Amazon also reported that operating cash flow increased 22% to $21.8bn (£16bn) for the trailing twelve months, compared with $17.8bn (£13.5bn) in Q2 2017.

Commenting on its outlook for Q3, Amazon said that it expects net sales are expected to be between $54.0bn and $57.5bn (£41bn-£43.5bn), or to grow between 23% and 31% compared with third quarter 2017.

Operating income is also expected to be between $1.4bn (£1bn) and $2.4bn (£1.8bn), compared with $347m (£265m) in third quarter 2017.

Brian Olsavsky, chief financial officer, said: “A big contributor to the quarter and the last few quarters obviously has been strong growth in our highest profitability business, AWS, and also advertising.”

Jeff Bezos, Amazon founder and CEO, said: “We want customers to be able to use Alexa wherever they are. There are now tens of thousands of developers across more than 150 countries building new devices using the Alexa Voice Service, and the number of Alexa-enabled devices has more than tripled in the past year.

“Our partners are creating a wide variety of new Alexa-enabled devices and experiences, including soundbars from Polk and Sonos; headphones from Jabra; smart home devices from ecobee and First Alert; Windows 10 PCs from Acer, HP, and Lenovo; and cars from automakers including BMW, Ford, and Toyota.”

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