Microsoft on Tuesday (26) announced a 12% increase in total revenue for the fourth quarter $51.9 billion. With operating income of $20.5 billion (+5%) and net income of $16.7 billion (+2%), Revenues from strategic sectors of the company such as Windows and Xbox fell.
Windows OEM (business sales) revenue for the period fell 2%. Microsoft quotes The move relates to production cuts in China and the “deterioration of the PC market in June with a negative impact on revenue”.. The Surface division saw a revenue increase of 10%.
In the second quarter of the year, the global computer market shipped about 72 million units, according to consulting firm Gartner. 12.6% decrease compared to the same period of 2021. The main drivers will be geopolitical, economic and supply chain challenges.
In the case of Xbox, video game services and content industry fell 6%, while hardware revenue fell 11%. According to the Microsoft report, this reflects “fewer hours of engagement and monetization on third-party content,” also referring to Game Pass.
LinkedIn and the Cloud
LinkedIn, also owned by Microsoft, saw a 26% increase in revenue, in addition to search and news ad revenue growing 15%. As for operating expenses, which rose 12% ($593 million), the company cites an increase in the platform due to investments and cloud engineering.
In the company’s server and cloud services industry, revenue grew 22% thanks to Azure, among others. Separately, these services saw a 40% increase. Net revenue from server products decreased by 2%.
Microsoft, on the other hand, did not comment on the $68.7 billion acquisition of Activision Blizzard, which is stated to be completed within this year.
Source: Tec Mundo
