Amazon.com announced last night that earnings fell nearly 35pc in the first quarter of 2006 compared to the same period in 2005.
The figures met analysts’ expectations, however, as the 2005 figures were atypical in that the company experienced a large once-off gain of US$26m due to an accounting change. In fact, sales increased in the first quarter of 2006 compared with 2005.
For the three months ended 31 March, the company earned US$51m, or 12 cents per share, compared with $78 million, or 18 cents per share, in the same period a year ago.
Sales increased nearly 20pc to US$2.28bn, from US$1.9bn in the first quarter of 2005. The company claimed sales would have grown 25pc if not for a US$94m impact from foreign exchange rates.
Amazon.com predicts sales revenue of between US$9.95bn and US$10.5bn for the full year.
By Niall Byrne