AWS remains Amazon’s fastest growing segment
Amazon Web Services (AWS) has generated $7.29 billion (€6.37 billion) in operating income for Amazon.com during the financial reporting year ended 31 December 2018.
Cutting closer in 2018, Amazon operating income for North America was $7.26 billion (€6.35 billion) with international operating loss of $2.1 billion (€1.84 billion).
This is not the first time AWS performs better, in 2017 generated an operating income of $4.3 billion (€3.8 billion), while Amazon generated $2.8 billion.
To put it in perspective, AWS year-over-year net sales growth was 47% in 2018, growing faster than the other business segments.
Overall, Amazon posted a growth rate of 31%. Net sales for the full year increased 31% to $232.9 billion (€203.7 billion), compared with $177.9 billion (€155.6 billion) in 2017. Operating income increased to $12.4 billion (€10.8 billion), compared with operating income of $4.1 billion (€3.6 billion) in 2017.
Net income increased to $10.1 billion (€8.8 billion) compared with net income of $3.0 billion (€2.6 billion), in 2017.
For the first quarter of 2019, Amazon expects operating income to be between $2.3 billion (€2 billion) and $3.3 billion (€2.9 billion), compared with $1.9 billion (€1.6 billion) in first quarter 2018.
In its financial results, Amazon mentioned among its highlights for 2018 the deal with the National Australia Bank who chosen AWS as their long-term strategic cloud provider.
As previously reported, NAB plans to migrate more than 300 applications, including core banking systems, to AWS by the end of 2019.
NAB said it will align to a “cloud-first” strategy going forward, leveraging AWS for compute, storage, database and analytics capabilities.
The aim of the strategic partnership is to build new services to deliver “better financial outcomes” for NAB’s nine million customers around the globe.
IDG News Service