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Microsoft Revenues Rise Three Per Cent

Alex Spencer

Microsoft has reported revenue of $21.5bn for the quarter ending 31 December 2012 – which it refers to as Q2, 2013. That number is up three per cent, from $20.8bn, from the same quarter in 2011, though its operating income dropped three per cent, to $7.8bn.

This revenue breaks down into $5.19bn for Microsoft's Server & Tools business, $5.69bn for the Microsoft Business Division, $869m for the Online Services Division, $3.8bn for the Entertainment and Devices Division, and $5.9bn for the Windows Division – which, as well as being the biggest earner, saw by far the biggest growth year-on-year, at 24 per cent, presumably driven by the release of Windows 8.

It was a big quarter for Microsoft in a variety of ways, as CEO Steve Ballmer pointed out in the results statement.

“Our big, bold ambition to reimagine Windows as well as launch Surface and Windows Phone 8 has sparked growing enthusiasm with our customers and unprecedented opportunity and creativity with our partners and developers,” Ballmer said. “With new Windows devices, including Surface Pro and the new Office, on the horizon, we’ll continue to drive excitement for the Windows ecosystem and deliver our software through devices and services people love and businesses need.”

The revenue for Microsoft's Entertainment and Devices Division – which includes Windows Phone handsets and Surface tablets, as well as its Xbox 360 consoles – dropped by 11 per cent year-on-year. The results don't break the revenues down, so the drop might be due to declining sales of the 360, as this generation of consoles reaches the end of its lifespan, but it's not a promising sign for the initial sales of Microsoft's latest mobile devices, which it gave a huge marketing push over the Christmas period.