Amazon wants to cut in half the Prime-time of delivery

The retail and Cloud Computing giant rushes from record to record. In the first quarter of spengten sales and profit expectations. In addition, Prime should be customers especially quickly supplied.

In the first quarter, Income grew in the year, and surprisingly strong 125 percent to $ 3.6 billion, as Amazon announced on Thursday after US stock exchange conclusion. So a lot of the largest online retailers earned the world never per quarter. Revenue rose 17 percent to $ 59.7 billion. The earnings per share of Amazon was able to double even more than to 7.09 dollars. The analysts had expected in the run-up to only 4.6 dollars.

The revenue has failed to rise again by double digits, but lower than the Plus of the fourth quarter. The majority of its revenue, the group achieved more with the Internet trade in the home market of North America. However, other divisions of throw, in the meantime, good money.

Lucrative Cloud business

Amazon Web Services

So Amazon's recorded lucrative business with IT services, and storage space in the network strong growth. The Web-platform to AWS, the Cloud Services sold to commercial, increased revenue by 41 percent to 7.7 billion dollars.

The operating result of the high-yield segment, which climbed 59% to 2.2 billion dollars. Thus, the Cloud-based business generated half of group profit, although it represents only 13 per cent of the total turnover.

Only a small increase in revenues is expected

Also in the business with Online advertising to put on Amazon. In addition, the group of star entrepreneurs, Jeff Bezos, and its output to the joy of investors made earlier, often nervous, in the meantime, great progress, keep the cost in the rudder. In the past quarter, spending climbed only 12.6 percent for Amazon's conditions, an unusually low value.

For the current quarter of the year, the company has, however, only a marginal increase in group sales to 59.5 to 63.5 billion dollars. The retail giant had already warned that the current quarter will not be to the liking of the shareholders. The operating result should be 3.6 billion dollars, far below expectations. Experts had previously assumed that a higher value of 4.2 billion.

More rates, Rising costs for Prime delivery

about Amazon

The primarily to rising costs. Instead of free delivery, within two business days, Amazon wants to guarantee its "Prime"customers will soon have a same day delivery - free of charge. For this Amazon needs more workers, more warehouses, and investments in the entire logistics.

Until what time is the delivery period should officially be a day reduces, is still to be determined. "We believe that we can make this year continuously rapid progress," said chief financial officer Brian Olsavsky.

investors have to be careful.

so Far, Amazon promises delivery within two days for most orders Here rivals such as Walmart and Target have tightened in the meantime. Analyst Cathy Morrow Robertson of the consulting company Logistics Trends & Insights estimates that Amazon currently handles up to 25 percent of deliveries within a day. This applies in particular to large cities. Difficult this will be to the country.

The shares posted after trading hours only a slight increase. The share price has risen so far this year, but by around 24 percent, with a market value of about 936 billion Dollar Amazon is moving again in the direction of the magic trillion mark.

lg/dpa/rtr

source: boerse.ard.de

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