Amazon, the world's largest online retailer, has posted its best ever second quarter results, with profits for 2Q18 hitting $2.5bn.
According to its latest earnings report, Amazon's advertising business grew by 132% from $945m to $2.2bn in 1Q18, while its second quarter profits were double Wall Street targets. Including all of its various businesses, the retail giant posted 39% year-on-year growth.
Amazon Web Services (AWS) has now become the company's most profitable business and reported Q2 revenues of $6.1bn, up 49 percent year on year. AWS posted operating profits of $1.64bn, up 84% year on year.
Brian Olsavsky, chief financial officer at Amazon said, "A big contributor to the quarter and the last few quarters has been strong growth in our highest profitability businesses and also advertising. We've seen a greater-than-expected efficiency in a lot of our spend in things such as warehouses, data centers and marketing."
Visit Innovation Enterprise's Digital Marketing & Strategy Innovation Summit in Shanghai on September 5–6, 2018
Of AWS, Olsavsky remarked: "The business has accelerated the last three quarters and we're seeing great signs in a number of areas. We've added 800 new services and features so far this year; that's an accelerated pace from last year, which was a record year. We see customers have migrated more than 80,000 databases using the AWS Database Migration Service."
Olsavsky said that many of its customers has branched out to new product areas such as machine learning, AI, IoT, serverless computing, and database and analytics.
At $14.6bn, Amazon's international revenues were lower than analyst consensus of $15.14bn, with the company continuing to sustain losses in a number of territories.