Thanks to lower prices that spurred greater sales, Amazon.com (Nasdaq: AMZN) Q2 profits ballooned 254.5 percent to $78 million from $22 million the year before.  The company also posted healthy revenue growth of 35 percent, reaching $2.89 billion in Q2 compared to $2.14 billion in Q206. The company also credited its customer loyalty program, Amazon Prime, with boosting its earnings and revenues in Q2. Missing in the earnings report was any mention of its video download service Amazon Unbox, which also expanded its relationship with DVR provider TiVo in Q2. More to come. Earnings release | Webcast

Not much talk of Amazon’s digital efforts on the earnings conference call. Tom Szkutak, Amazon’s CFO, offered some general comments on digital media offerings in response to a question: “It’s too early for us to discuss any of the traction we’re seeing. As you know we have Amazon Unbox, which has downloadable videos and made arrangements with TiVo… And we have announced, but not yet launched a DRM-free MP3 music offering that we’re very excited about. But we’ll have to wait and stay tuned for that.”

—Advertising is also becoming more important to Amazon’s revenue streams, though Szkutak added that the company doesn’t break out those numbers either. He suggested that Amazon is working more closely on some ad-related initiatives, but declined to offer more details.

Updated: Rafat adds: From its SEC filing on earnings today: it says it acquired “certain companies during Q2 2007 for an aggregate purchase price of $33 million, including cash payments of $24 million in the three months ended June 30, 2007 and future cash payments of $9 million. We also made principal payments of $13 million on acquired debt in connection with one of these acquisitions.” The two acquisitions that we know of were Brilliance Audio, the audiobooks publisher and London-based digital camera review site Dpreview.com. If these were the only two, then you can guess who got which part…my guess is the earnout element was for Dpreview.