DCL Connecting talent
  • Virgin
  • SingTel
  • Tata
  • Nebulas
  • CNS
  • Secure Data
  • Telstra Global
  • Telecity
  • KCOM
Comments Off on Microsoft profits improve on growing cloud business

Microsoft profits improve on growing cloud business

Posted by Admin | July 20, 2016 | Telecoms

Microsoft reported a strong improvement in profits for its fiscal fourth quarter to June, led by strong sales for its enterprise products such as Azure, which more than doubled revenues. The company’s net result moved to a profit of USD 3.12 billion from a loss of USD 3.20 billion a year ago, helped by lower charges at the mobile phone business. Adjusted EPS increased 11 percent, or 27 percent at constant exchange rates, to USD 0.69. 

Revenues were still down 7 percent to USD 20.61 billion, due to deferral of some Windows revenues, but rose 5 percent excluding currency effects. Sales at the More Personal Computing division declined 4 percent (down 2% in constant currency) to USD 8.9 billion, while sales from Productivity and Business Processes grew 5 percent (8% in constant currency) to USD 7.0 billion.

In addition to the strong growth at Azure, Microsoft said server products and cloud services revenue increased 5 percent (up 8% in constant currency). Office products and related cloud services also grew sales 5 percent in the commercial sector and 19 percent in the consumer market, and  Dynamics revenue increased 6 percent.

The mobile phone business continued to contract, ahead of the planned sale to Foxconn, with sales down 71 percent to USD 870 million. This was offset somewhat by a 9 percent rise in Surface revenue. Gaming revenue was also lower, down 9 percent after a 33 percent fall in hardware sales ahead of the upcoming release of new Xbox products. Xbox Live revenue increased 4 percent, driven by higher volume of transactions and revenue per transaction, and Microsoft also reported growth of 54 percent in search advertising revenue.

The Windows market was also slow as users relied on the free upgrade to Windows 10 rather than buying new PCs. An increase in OEM revenue of 11 percent helped generate a small increase in overall Windows revenue, offsetting lower licensing sales.

Source: telecomspaper

118 total views, 1 today