Mixed trading for Amazon’s key Irish subsidiaries last year

Cork-based customer services unit saw pretax losses more than double in 2016

Amazon, which set up in Ireland in 2004, last year announced plans to create 500 high-tech jobs at its Dublin hub
Amazon, which set up in Ireland in 2004, last year announced plans to create 500 high-tech jobs at its Dublin hub

Amazon, which employs more than 1,800 people in Ireland, experienced mixed trading at its two key Irish subsidiaries last year, recently filed accounts show.

The company's Cork-based customer services subsidiary, Amazon CS Ireland Limited, saw pretax losses more than double for the 12 months ending December 2016.

It recorded a loss on ordinary activities before taxation rise to €2.96 million in 2016, as against a €1.4 million loss in the prior year. After adjusting for a tax charge of €995,000 a deficit of €3.96 million was charged to shareholder’s funds.

Turnover rose to €98.2 million last year, having risen 58 per cent a year earlier from €57.3 million to €90.8 million. The division recorded an operating loss of €2.96 million, versus a €1.45 million loss in 2015.

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The unit, which increased headcount from 839 to 904 last year, reported staff-related costs of €39 million, up from €35 million the previous year.

Share-based awards for employees received during 2016 rose to €4.96 million from €4.26 million.

Web-hosting services

Separately, Amazon Data Services Ireland Limited, which provides web-hosting services to group companies, recorded a pretax profit of €26 million last year, virtually unchanged from a year earlier. After adjusting for a €421,000 tax credit, a profit of €26.5 million was made available for dividends and retention.

Turnover for the company, which operates several data hub services in the Dublin area, rose to €784 million, after jumping 45 per cent to €639 million from €440 million a year earlier.

The subsidiary, which employed 756 people last year, saw staff costs rise to €79.7 million from €74 million.

Share-based awards for employees increased to €9.7 million from €8.4 million a year earlier, the accounts show.

The unit’s parent, which set up in Ireland in 2004, last year announced plans to create 500 high-tech jobs at its Dublin hub due to rapid growth for its Amazon Web Services, which covers cloud computing products.

Charlie Taylor

Charlie Taylor

Charlie Taylor is a former Irish Times business journalist