Amazon's Irish firms report over €5bn in revenues

The company plans to expand its data centre business here

Amazon Ireland Support Services Ltd, based at the Airport Business Park in Cork, employs 2,275 workers. Picture: Larry Cummins

Revenues at Amazon’s data centre business here last year surged by €1.17bn to €4.85bn.

New accounts show that despite Amazon Data Services Ireland Ltd’s revenues increasing by 32% from €3.68bn to €4.85bn, the company recorded an 8% drop in pre-tax profit to €61.5m.

The firm operates several data hub facilities here and employed 1,753 at the end of 2022.

The company’s operating profits declined by 47% from €62.3m to €33.14m which followed operating expenses rising by 33% or €1.2bn to €4.82bn last year.

The directors state that the company’s increase in administrative expenses was “primarily due to an increase in data centre operational expenses”.

The data centre expenses increased against the backdrop of soaring energy prices in the first three quarters of 2022.

The profit for last year takes account of non-cash depreciation costs of €1.02bn.

The average numbers employed increased by 321 from 1,313 to 1,634 as staff costs increased by 35.5% from €138.4m to €187.67m, including share-based payments rising from €19.44m to €30.88m.

During the year, the company received a cash injection of €2.7bn from a connected entity to give the firm the financial firepower to expand its data centre business here.

Amazon has plans before Fingal County Council for a further three new data centre buildings for its Amazon Web Services (AWS) data centre campus on a 65-acre landholding at Cruiserath Rd, Dublin 15.

In addition to the three proposed, one Amazon data centre is already operational at the campus while construction work continues on two others.

Planning documents lodged with the application state that AWS directly invested €4.4bn in Ireland between 2011 and 2020 and supports 8,700 jobs here.

Amazon Data Services Ltd recorded post-tax profits of €36.09m after paying corporation tax of €25.4m.

At the end of December, the firm had shareholder funds of €5.18bn mainly made up of 'other reserve’ of €4.73bn.

Cork-based sister firm

Separate accounts for Cork-based sister firm Amazon Ireland Support Services Ltd show that it is an even bigger employer with 2,275 workers at the end of December.

The company provides customer services, logistics, and other support services to group companies and the accounts disclose that since the end of December, it has paid out dividends totalling €602m.

New accounts show that the firm recorded a pre-tax loss of €10.8m as revenues increased by 17% to €261.92m.

The firm's wage costs increased sharply from €96.26m to €121.28m as the average number of employed increased from 1,902 to 2,076. The staff costs included share-based payments of €19.19m.

Neither set of accounts, signed off in March and February, makes reference to the two recent rounds of job cuts announced by Amazon globally.