Amazon sees profits dip and revenues rise

Shares leap up by seven per cent in light of revenue increase
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The online retailer has revealed a steep decline in profits for the end of 2012, whilst reporting a increase in revenues across the three-month period.

Amazon announced its net income for the final three months of 2012 as $97m (£61.5m), a sharp drop from the $177m it reported during the same period in 2011.

Whilst experiencing a fall in profits, the firm still managed to increase revenues by 22 per cent during the period, with a rise from $17.43bn to $21.27bn.

The world's largest online retailer has cited the growth as a response to the booming ebook market, which the firm reports is up 70 per cent on the previous year.

In light of the announcement, shares in the firm rose by just under seven per cent.

Jeff Bezos, founder and chief executive of Amazon, told the BBC: "We're now seeing the transition we've been expecting," said Jeff Bezos, founder and chief executive of Amazon.com.

"After five years, e-books is a multi-billion dollar category for us and growing fast - up approximately 70 per cent last year.

"In contrast, our physical book sales experienced the lowest December growth rate in our 17 years as a book seller, up just 5 per cent.

"We're excited and very grateful to our customers for their response to Kindle and our ever-expanding ecosystem and selection."

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