Internet retail leader Amazon.com last night reported earning of $73m for its fourth quarter, giving it its first back-to-back quarterly profit and first full-year profit.
The company said net earnings surged to $73m from $2.6m in the same period a year ago as revenues rose on promotions including free delivery for many customers. The profits were in line with Wall Street estimates.
Revenues for the October-December period jumped 36% to a record $1.95 billion as the retailer's volumes jumped for the year-end holidays.
Amazon, closely watched as a test of the profitability of internet commerce, managed a modest gain for 2003 of $35m, its first full-year profit. That compared with a net loss of $149m in 2002. Net sales were $5.3 billion in 2003, a 34% increase, helped in part by $232m foreign exchange effects.
In addition to aggressive promotions involving free shipping, Amazon has extended its reach recently to be the gateway for other retailers, including sellers of books, apparel and other merchandise.
'In addition to purchasing thousands of $29 DVD players this holiday season, customers also bought Tibetan yak cheese,
pomegranate molasses and zero carb cheese straws,' said Jeff Bezos, founder and chief executive.
