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Rising costs hit Amazon’s profit

Amazon has reported a lower than expected profit increase for the third quarter, following a rise in operating expenses.

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Amazon’s net profit rose to $252m (£207m), or 52 cents a share, from $79m (£65m) last year. However the average estimate earnings per share was 78 cents.

The etailer said expenses jumped by 31.5% to $10.94bn (£9m) as it invested in its web services, expanded its Prime service internationally, built up its warehouse and delivery infrastructure and increased its video output.

Total sales increased by 29% in line with expectations, while net sales increased to $32.71bn, (£26.8bn) compared to $25.36bn (£20.8bn) last year.

Amazon said it expects sales to come in between $42bn (£34bn) and $45bn (£37bn) for the next quarter.

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