Amazon Australia narrows losses in FY19
Amazon Australia booked a $4.7 million net loss during FY19 – 11.3 per cent less than the $5.3 million lost the year prior.
Revenue also improved over the year, increasing to $562.1 million from $292.3 million. $219.4 million of this came directly from retail sales – more than double the year prior.
With the launch of Amazon Prime and other subscription offerings, the online giant’s revenue from subscriptions rose 723 per cent to $35.4 million, compared to $4.3 million in FY18.
Labor costs also rose significantly, however, up to $50.5 million from $23.3 million, as Amazon expanded its footprint and launched a third local distribution center.
“This expansion represents the investment and development of our growth strategy in Australia, following a steady and progressive increase in customer demand,” Craig Fuller, director of operations at Amazon Australia, said in a statement.
And while Amazon Australia’s income tax rose to $7.7 million, it was able to defer $5.2 million of that payment, only spending $2.5 million for FY19.
The result shows the business is slowly, but surely, ramping up in Australia. And given that the business has recently filed a trademark for ‘Amazon Pharmacy‘, we already have an idea of what the next year will bring.