Amazon witnesses $857 million quarterly profit

Amazon’s revenues have surged by 31 percent to $30.4 billion.

The Dollar Business Bureau

Online major Amazon said on Thursday that the company’s profit in the second quarter jumped nine times to $857 million, backed by the cloud services as the technology giant extended its offerings.

Amazon revenues have surged by 31 percent to $30.4 billion. The online giant said its stronger-than-expected outcome.

Though Amazon has repute for delivering very less or no profit from its operations in retail, the company’s earnings have been increasing over the last year as it extends its services into video and new delivery and enhances the Amazon Web Services (AWS) - its cloud computing unit.

The robust profit for Amazon came a year after the $92 million earnings, which started showing signs of improvement for the company.

The technology giant has also been creating loyalty with its subscription service of Amazon Prime, which gives access to its online music and video as well as quick delivery for most of the products.

The online major has been expanding worldwide, especially to India.

"It's been a busy few months for Amazon around the world, and particularly in India -- where we launched a new AWS region, introduced Prime with unlimited free shipping, and announced that Prime Video is coming soon, offering Prime members in India exclusive access to Amazon Original Series and Movies - including original content featuring top Indian creators and talent," said Jeff Bezos, founder and chief executive Amazon, in a statement.

"The Indian team is inventing at a rapid speed, and we're very thankful to our consumers in India for their warm response,” he added.

In the statement, Amazon said that the 2nd annual ‘Prime Day’ of the company was the biggest ever day and that was also a record day for Amazon products worldwide.

The orders globally increased by more than 60 percent, it added.

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The Dollar Business Bureau - Jul 30, 2016 12:00 IST