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Posted: Wed., Jul. 23, 2008, 6:05pm PT

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Amazon earnings up despite economy

Co.'s net income surged to $158 million

Ad revenues drop due to economy

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Higher gas prices may be helping, rather than hurting, Amazon. Netco said on Wednesday that its second-quarter earnings doubled and revenue jumped 41% as more consumers apparently did their shopping online.

Its net income surged to $158 million, from $78 million, as revenue jumped 41% to $4.06 billion. Sales of books, music and movies grew 31% to $2.41 billion.

Netco's strong showing, helped in part by a one-time $53 noncash gain in the sale of its Euro DVD biz, follows mixed results from other tech outfits. Amazon also raised full-year revenue projections, but even its execs cautioned against reading too much into its results about the strength of the economy.

Netco last week a added video-on-demand streaming to its Unbox download offerings. VOD service allows consumers to stream TV episodes and pics immediately. Amazon's Unbox has yet to take off with consumers. Apple immediately surpassed it after inking a series of rental and sales deals with major studios for their latest movie releases earlier this year.