After record $5m sales, the company is issuing a dividend of a US penny a share, the first dividend for Amazon investors since the online bookstore set up shop on the Web in the mid-90s. Amazon said its net profit, which includes charges such as acquisition expenses, stock compensation and interest payments on debt, was $5m, or one cent a share in the fourth quarter of 2001. This compares to a loss of $545m, or USD 1.53 cents a share a year earlier.
The announcement surprised analysts who predicted the company would report a profit on a pro forma basis, which excludes a host of expenses and charges.
Strong international sales and internal cost cutting helped Amazon achieve its profit result. Amazon’s Christmas sales were up 15 per cent this year, with online revenues of $1.12bn for the fourth-quarter of 2001, compared to $972bn in the previous year’s final quarter.
The positive news prompted the soaring of Amazon shares on Wall Street, which rose in value by 24 per cent on the day of the profit announcement.
The results show that Amazon’s core business has grown five per cent worldwide reaching sales of $538m, compared to its announcement of a 12 percent sales drop in its core books, music and video segment last November.
Internationally, the company said fourth quarter sales from its UK and Irish, German, French and Japanese operations rose 81 per cent to $262m.
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