Amazon Narrows Loss24 Oct, 2002 By: Joan Villa
Web retailer Amazon.com boosted third-quarter revenue 33 percent to $851 million over the year-ago period and narrowed its net loss to $35 million from a net loss of $170 million last year.
Sales for the etailer's books, music and DVD/video segment grew 17 percent to $412 million, and pro forma operating profit for the category rose 64 percent to $43 million.
CEO Jeff Bezos said Amazon will continue at least through Christmas the company's free “super saver shipping” on orders over $25.
“We've lowered prices five times over the last 15 months, and simply put, it's working,” Bezos noted.
Pro forma operating profit for the period ended Sept. 30 was $27 million, or 3 percent of net sales, compared to a pro forma operating loss of $27 million in the third quarter of 2001.
Amazon upped its guidance for the fourth quarter to show an operating profit between $70 million and $95 million. Revenues in 2003 are expected to climb to $200 million, which would be 10 percent over 2002, the company said.