Amazon has announced a fall in profits, despite growing sales throughout the first quarter of the year.
With quarterly earnings season now well underway, Amazon’s stepped up to announce its preliminary financials for the year.
Suffering a largely disappointing start to the year, the world’s biggest online retailer suffered a 37 per cent drop in net income, recording $82m (£53m) for the opening three months of the year.
Despite the decline, Amazon’s sales of digital content provided a boost to revenue, which ended at $16bn for the quarter – an increase of 22 per cent.
However, analysts have been quick to maintain damage control on the results, stating that the firm’s latest investments and expansion plans had taken a toll on the year’s opening financials.
In addition to launching new Kindle devices, Amazon has sinked significant investment into new warehouse developments in order to improve delivery times – a move seen to damage the firm’s short-term profits in order to maintain long-term success.
Amazon is also rumoured to be readying its own video streaming device to rival the likes of the Apple TV, which would incorporate the retailer’s LoveFilm on-demand media service.