Amazon data centre business in Ireland saw profits jump a third last year
While there was a big jump in profits, the figure as a percentage of sales was small after taking account of expenses and data centre investments, for instance.
Pre-tax profits at the Republic of Ireland arm of Amazon Web Services jumped 30.5% last year to €39.5m, with total sales spiralling 49% to €1.65bn.
The Amazon Data Services Ireland Ltd (ADSIL) business operates several data centres in the Dublin area and is planning further expansion to its facilities. Last year, it secured planning permission for the first phase of a new €1bn data centre campus at Mulhuddart in County Dublin.
The results show the company’s administrative expenses in 2018 increased from €1bn in 2017 to €1.6bn, and non-cash depreciation costs climbed from €680m €801m. And research and development costs increased more than sixfold from €9.9m to €70.7m million. Operating lease costs increased to €21.3m.
Amazon paid corporation tax of €11m on its profits, which left a post-tax profit of €27.6m.
As for staff, at the end of last December, the company employed 1,371, which was up from the 1,189 on its books a year earlier. Staff costs for the year increased €118m to €151m.
Pay for five directors serving during the year increased by 31% to €1.60m, which included share-based awards of €1m.
Another Amazon entity in the Republic, Cork-based Amazon CS Ireland Ltd (ACSI), that operates a customer service centre at Cork Airport Business Park, saw its sales increase 11% to €119m.
That operation employed just over 1,000 at the end of last December. It recorded a pre-tax loss of €3.6m after incurring administrative expenses totalling €122.6m.
Globally, Amazon recorded revenues totalling $232.9bn last year.