Amazon defends innovations after Q2 loss

Amazon boss Jeff Bezos has defended the company's second quarter financial results, with the firm posting a $126m (£74m) year-on-year loss, citing the brand's investment in customer innovations.

Amazon Prime Air: the drone delivery device
Amazon Prime Air: the drone delivery device

Amazon’s shift from pure ecommerce to digital content and devices saw total operating expenses rise 24% to $19.4bn (£11.4bn), compared to revenues of $19.3bn, up 23% on the same period in 2013. Marketing expenditure in the quarter increased 40% year on year to $943m (£555m).

Investors responded negatively in the hours after the results were made public, with Amazon’s share price tumbling by 10%.

Bezos, the Amazon founder and chief executive, said: "We continue working hard on making the Amazon customer experience better and better."

He listed innovations such as Sunday delivery to US customers, the Prime Music streaming service, the creation of original TV content and the launch of its new Fire smartphone, which begins reaching US customers this week.

Earlier this month, . According to reports, for $9.99 (£5.80) a month, Kindle users will be able to download an unlimited number of e-books and audio books.

Amazon also recently revealed it had using drones to deliver packages to customers in 30 minutes or less.

jcdecauxec1

Market Reports

Get unprecedented new-business intelligence with access to ±±¾©Èü³µpk10’s new Advertising Intelligence Market Reports.

Find out more

Enjoying ±±¾©Èü³µpk10’s content?

 Get unlimited access to ±±¾©Èü³µpk10’s premium content for your whole company with a corporate licence.

Upgrade access

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an alert now

Partner content