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Amazon’s profits double in record results

Amazon.com has posted record profits of $3.6bn (£2.8bn) – up from last year’s $1.6bn (£1.2bn) – for the 13 weeks ended March 31 2019.

The online retail giant’s net sales increased 17% to $59.7bn (£46.2bn) in the first quarter, compared with $51bn ($39bn) in 2018.

Despite its record results, the company’s growth has slowed compared with last year as North American revenues rose by 17%, compared with 46% last year. Its international growth dropped 9%, down from 34%.

Operating income increased 89% to $4.4bn (£3.4bn), up from $1.9bn (£1.4bn) in the same period in 2018.

Amazon said it expected its net sales to be between $59.5bn (£46.1bn) and $63.5bn (£49.2bn), or to grow between 13% and 20% in the second quarter of the year.

The company is also reportedly planning to cut its Amazon Prime delivery times in half, offering one-day delivery instead of two-day. This will mostly benefit its American customers as the company is planning to spend $800m (£620m) on the initiative.

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