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AWS lightens the losses at Amazon

AWS lightens the losses at Amazon

Amazon saw group revenues rise 7% year-on-year for the three months ended 30 June, 2022, reaching over $121 billion, with cloud unit AWS the star performer again.

AWS’ turnover jumped from $15 billion to $20 billion in a year, and the operating profit rose from $4 billion to $6 billion.

Amazon’s group online sales fell 4% to $50.8 billion, but its third party seller services grew 9% to $27.4 billion.

Subscription services, including Prime, jumped 10% to $8.7 billion. Amazon has just increased its monthly and annual Prime subscription prices.

The group operating profit decreased to $3.3 billion in the second quarter, compared with $7.7 billion in second quarter 2021.

Amazon also made a net loss of $2 billion in the quarter, compared with a net profit of $7.8 billion last time. The loss includes a pre-tax valuation loss of $3.9 billion included in non-operating expenses from the common stock investment in electric van firm Rivian Automotive.

Amazon is predicting growth of 13%-17% in Q3, when compared to the same quarter last year. Despite the net loss, the share price was up on the back of this prediction.

“Despite continued inflationary pressures in fuel, energy and transportation costs, we’re making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfilment network,” maintained Andy Jassy, Amazon CEO.