Amazon lifts revenues, doubles profit in Q2

Friday 31 July 2020 | 08:58 CET | News

After saying earlier that profits might suffer in the second quarter amid investments related to covid-19 pandemic, Amazon has reported a doubling of its operating and net profit, with revenues up 40 percent. 

Revenues for the quarter jumped 40 percent from the year before to USD 88.9 billion, including a negative forex effect of USD 582 million. The operating profit meanwhile leaped to USD 5.8 billion from 3.1 billion year-on-year, while the net profit soared to USD 5.2 billion or USD 10.30 per diluted share, from 2.6 billion and 5.22 per share. The operating cash flow increased 42 percent to USD 51.2 billion while the free cash flow rose to USD 31.9 billion from 25 billion. 

Revenues from North America lifted to USD 55.4 billion from 38 billion, with the operating profit going higher to USD 2.1 billion from 1.6 billion. At International operations, revenues advanced to USD 22.6 billion from 16.4 billion while the operating result went to a profit of USD 345 million from a loss of 601 million. At AWS, revenues climbed to USD 10.8 billion from 8.4 billion, with the operating profit increasing to almost USD 3.4 billion from 2.1 billion. 

CEO Jeff Bezos said this was another “highly unusual” quarter and that third-party sales again grew faster than Amazon first-party ones. The company said it invested over USD 9 billion into capital projects, including fulfilment, transportation and AWS, and spent over USD 4 billion on pandemic related costs. The money here went to protect workers, clean facilities, create new work methods, add new backup family care benefits and pay over USD 500 million worth bonuses to front-line employees and delivery partners. Bezos said the company created over 175,000 new jobs since March and is in the process of bringing 125,000 of these into regular and full-time positions. The company also donated over USD 10 million worth of personal protective equipment to various relief organisations. 

Looking ahead, the company is guiding for revenues up 24-33 percent to USD 87-93 billion and an operating profit of USD 2-5 billion, including USD 2 billion worth of costs related to the coronavirus pandemic.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Categories: Internet
Companies: Amazon
Countries: World
::: add a comment
This article is part of dossier


Add comment

We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the Telecompaper website, they in no way represent the opinion of Telecompaper.


Amazon in talks to build three Israeli data centres for ILS 1 bln for AWS - report

Published 03 Aug 2020 11:22 CET | Israel
Amazon is in talks to set up data centres in three locations in Israel, Globes reported citing sources. Each Amazon Web Services ...

Amazon verhoogt omzet en verdubbelt winst in Q2

Published 31 Jul 2020 10:04 CET | World
Ondanks eerdere waarschuwingen dat de winst in het tweede kwartaal zou kunnen dalen als gevolg van investeringen in verband met ...

Calendar   /   Industry Events

06 Aug BCE Q2 2020
06 Aug Vonage Q2
06 Aug Adtran Q2
06 Aug Veon Q2 2020
06 Aug Switch Q2 2020
06 Aug T-Mobile US Q2 2020
06 Aug PCTel Q2 2020
06 Aug Deutsche Telekom Q2 2020
06 Aug Fortinet Q2
06 Aug NortonLifeLock fiscal Q1
06 Aug OTE Q2 2020
06 Aug Cincinnati Bell Q2 2020
06 Aug Cogent Communications Q2 2020
06 Aug Immersion Q2 2020
06 Aug Motorola Solutions Q2 2020
06 Aug Cable One Q2 2020
06 Aug MTN Q2 2020
06 Aug PCCW H1 2020
06 Aug Tucows Q2 2020
06 Aug Sierra Wireless Q2 2020
06 Aug Viasat fiscal Q1
06 Aug EchoStar Q2 2020
06 Aug FCC meeting
07 Aug O2 Czech Republic Q2 2020
07 Aug Starhub Q2 2020
07 Aug TDS, US Cellular Q2 2020
07 Aug Dish Network Q2 2020
10 Aug Avaya fiscal Q3
10 Aug Sohu Q2 2020
10 Aug ON Semiconductor Q2 2020
::: More Calendar Items