Sunday 21 April 2019

Revenues at Amazon unit soar to €1.6bn

 

Delivering: Amazon founder Jeff Bezos is the world’s richest man with an estimated fortune of $131bn. Photo: Joe Klamar
Delivering: Amazon founder Jeff Bezos is the world’s richest man with an estimated fortune of $131bn. Photo: Joe Klamar

Gordon Deegan

Pre-tax profits at the main Irish arm of online giant Amazon increased by 30.5pc to €39.46m last year as revenues soared.

New accounts filed by Amazon Data Services Ireland Ltd (ADSL) show that the firm enjoyed the increase in profits after revenues jumped by 49pc, from €1.1bn to €1.65bn.

At the end of last December, the company employed 1,371.

Earlier this month, Forbes reported that the founder and CEO of Amazon's global operations, Jeff Bezos, has held his position as the world's richest man with an estimated fortune of $131bn. Globally, Amazon last year recorded revenues of $232.9bn.

And 2018 was a year for expansion of ADSL here as the numbers employed went up from 1,189 to 1,371.

The firm operates several data hub facilities in the Dublin area and last year secured planning permission for the first phase of a new €1bn data services centre at Mulhuddart in Co Dublin.

Administrative expenses last year increased from €1bn to €1.6bn and a contributor to the increase was non-cash depreciation costs rising from €680m to €801m.

Research and development costs increased from €9.9m to €70.7m. Operating lease costs increased to €21.28m.

The company paid corporation tax of €11m on its profits, leaving a post-tax profit of €27.6m.

The increase in numbers employed by the firm resulted in staff costs rising from €117.98m to €151.4m.

Five directors served during the year and their pay increased by 3pc, from €1.23m to €1.62m, including shared-based awards of €1.03m. At the end of December last, shareholder funds totalled €845.57m. Accumulated profits increased from €100.96m to €128.58m.

Another Amazon firm, the Cork based Amazon CS Ireland Ltd (ACSI) - which operates a customer service centre at Cork Airport Business Park - also enjoyed growth last year as revenues increased by 11pc to €119m.

The firm employed 1,011 at the end of December last. The company recorded a pre-tax loss of €3.56m after incurring administrative expenses of €122.6m. Staff costs last year increased from €48.18m to €51.35m.

Irish Independent

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