Amazon lifts profit in Q4 despite weak international ops, sees mixed Q1

Amazon said revenues for its fourth quarter advanced to USD 87.4 billion from 72.4 billion the year before, including a negative forex effect of USD 120 million, well in line with expectations. Despite a forecast for a lower profit, the operating profit crept up to USD 3.9 billion from 3.8 billion, and the net profit lifted to USD 3.3 billion or USD 6.47 per diluted share, from 3.0 billion and 6.04 per share.  

CEO Jeff Bezos said more people joined Prime this quarter than ever before, for a total of 150 million paid Prime members around the world. Meanwhile, the number of items delivered in the US within one-day quadrupled compared to the year before. Looking ahead, the company sees higher revenues for the first quarter, up 16-22 percent to USD 69-73 billion, but a mixed picture for the operating profit, at USD 3-4.2 billion, from 4.4 billion the year earlier. 

Revenues for the quarter from North America went higher to USD 53.67 billion from 44.12 billion but the operating profit slipped to USD 1.90 billion from 2.25 billion. Operations were still loss making at International, where revenues went up to 23.81 billion from 20.82 and the operating loss narrowed to USD 617 million from a loss of 642 million. Finally, at AWS, revenues strengthened to USD 9.95 billion from 7.43 billion while the operating profit went higher to 2.59 billion from 2.17 billion.

For the full year, revenues increased 20 percent to USD 280.5 billion, including a negative forex effect of USD 2.6 billion. The operating profit went up to USD 14.5 billion from 12.4 billion while the net profit climbed to USD 11.6 billion or USD 23.01 per share, from 10.1 billion and 20.14 per share. 

Regarding India, the company said it will invest USD 1 billion into helping digitise traders and micro, small and medium-sized business, with the goal of bringing over 10 million of these online by 2025. The company has also pledged to have 10,000 electric vehicles in its Indian delivery fleet by 2025, as part of its commitment to meet the Paris Agreement 10 years early by achieving net zero carbon emissions by 2040. The company said it has created over 700,000 direct and indirect jobs in India, with the aim of creating 1 million more by 2025.