India a good story for us: Amazon
Net sales increased 38 per cent to .5 billion, compared with .7 billion in the year-ago period. Net sales increased 38 per cent to .5 billion, compared with .7 billion in the year-ago period.
Amazon.com reported a profit of nearly $2 billion, the largest in its history, as the online retailer drew millions of new customers to its Prime fast-shipping club for the holiday season and as changes to the US tax law added to its bottom line.
The world’s largest online retailer said net income more than doubled to $1.86 billion, or $3.75 per share in the fourth quarter ended December 31.
Net sales increased 38 per cent to $60.5 billion, compared with $43.7 billion in the year-ago period. However, international business witnessed a loss of about $3 billion, largely due to spends in India. The company, which is competing with home-grown etailer Flipkart, is burning cash to offer discounts for capturing the growing Indian market.
According to the latest quarterly financial results of Amazon, it reported about $3.06 billion losses from international operations for the year ended 2017, against a loss of $1.2 billion last year. Amazon in its filing said the Prime selection in India now offers members more than 25 million local products from third-party sellers. “India continues to be a good story for us. We feel that it has had a lot of growth in the past year. In fact, more Prime members joined India’s Prime program in the first year than we’ve seen in any other country…” CFO Brian Olsavsky said. (With Inputs from FE)
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