Amazon Losses Higher As Media Products Turn Profitable
Announcing second-quarter results only a day after company president Joe Galli quit for personal reasons, Amazon.com yesterday reported it had achieved pro forma operating profitability in its U.S. books, music and DVD/video segments.Net sales for the three months ended June 30 were $578 million, up 84 percent from $314 million in the same quarter last year. But pro forma losses also rose this second quarter to $89 million, up from $67 million in the same period in 1999.
Cumulative customer accounts grew by 2.5 million this second quarter to 22.5 million. Repeat customer orders were 78 percent of all orders in this period vis-à-vis 70 percent in the second quarter of 1999. Average sales per 12-month customer were $125 this quarter, up from $108 in second-quarter 1999.
Overall, the Seattle retailer expects a cash balance of $908 million by year-end, Warren Jenson, Amazon's chief financial officer, said in a conference call.
