Amazon.com Third Quarter Sales Curtailed by Spending
Amazon has reported a disappointing set of third-quarter results, with losses following investment in its Kindle business, distribution centres and online deals service LivingSocial.
Thursday’s press release announced a loss of $274 million, equivalent to 60 cents per share, for the July-September period.
This is a decrease from last years earnings of $63 million, or just 14 cents per share.
The online giant holds a minority stake in deals site LivingSocial, and the latest quarter's loss of 37 cents per share can be atributed to impairment charge stemming from this.
Overall revenue grew 27 percent to $13.81 billion, from $10.88 billion. Though respectable, the increase falls short of analysts' expectations.
Amazon has spent widely on the Kindle, constructing new distribution warehouses and furthering the range of digital content available to users. While short-term earnings are unimpressive, it is hoped that investment will be reflected in increased future custom.
The Kindle Fire HD is the company’s best selling product, with a larger version set to be released next month. This comes just days after Apple launched the iPad mini, in many ways a similar product.
“Our approach is to work hard to charge less. Sell devices near breakeven and you can pack a lot of sophisticated hardware into a very low price point," CEO Jeff Bezos said in a statement.
Amazon analysts have forecast revenue for the current quarter, including the busy Christmas period, at $20.25 billion to $22.75 billion.