Internet retail giant Amazon.com last night reported a third-quarter net loss on sharply higher revenues.
Amazon posted a net loss of $35 million compared with a loss of $170 million a year earlier.
It said aggressive price-cutting and free shipping promotions had helped it accelerate growth in a generally tough retail environment.
The company also raised fourth-quarter revenue guidance and said it was cautiously optimistic about the Christmas season.
Revenue rose 33 per cent to $851.3 million from $639.3 million a year earlier, above the $780 million to $830 million the Seattle-based online superstore had projected.
A key driver of that revenue growth, the company's free shipping promotion on all orders of $25 or more, will be extended at least through the holiday season, Amazon said.
Analysts said Amazon had performed better than expected in the past quarter, but some warned the company's forecast for 2003 left the possibility that growth might not keep pace with market expectations built into its pricey shares. Amazon also said it expected to report fourth-quarter revenues of between $1.33 billion and $1.44 billion, which is well above the average analyst estimate of about $1.25 billion.