It is the turn of Microsoft to publish its results for the second quarter of its fiscal year 2017. The giant of Redmond’s revenues and earnings slightly up, as usual thanks to the good figures recorded by Azure and Office 365.
Historically, it is the second quarter of its fiscal year that Microsoft displays its best results. This year, the Windows-based editor has not beaten new records, but achieved scores that meet its forecasts, in line with the expectations of investors.
numbers and debt
With a turnover of 24,09 billion dollars, Microsoft has experienced a growth of 1 % compared to the same period last year. A progression that the company must, in part, to the integration of the results of LinkedIn in its financial statements since 8 December last. Otherwise, the mass could have been different.
As for the net income, it grew by 6 % year on year and reached 5,20 billion. Enough to allow the company to Satya Nadella to garnish with a few more its funds. Microsoft now has 122,8 billion dollars of cash available, compared with 113,2 billion at June 30, 2016.
However, the total debt of the company increased over the same period from 40 to 59 billion dollars, the giant of Redmond has decided to borrow to finance its acquisition of LinkedIn, and take advantage of the low cost of money at this time. Others see it as a willingness to not touch the money held by the company in countries to tax more lightly, for fear of having to pay huge taxes.
speaking of taxes, we note a significant increase in amounts set aside to pay taxes, as in the Alphabet. Again, it will be necessary to wait until the end of the year before jumping to conclusions.
Office 365 continued happy
now we’ll Look in a little more detail to the different branches of Microsoft, starting with ” PBP ” (Productivity and Business Processes), which brings together the activities of Dynamics, LinkedIn and Office.
once again, it is from this branch that originates from the greatest part of the profits of operating the business : approximately 3.26 billion dollars, a figure that has remained relatively stable (-1 % year on year), while the income she saves rose 10 % year on year, to 7,38 billion.
These good performances, PBP the is Office 365, whose sales are steadily improving. On the business side, Microsoft note a growth of 47 % in revenues, with an increase of 37 % of the customer base. In particular, revenue growth reached 22 %, with 24.9 million subscribers. Microsoft would also like to let go of a interesting figure : the Office applications on Android and iOS are now 65 million monthly users (MAU), two times more than last year.
on The side of Dynamics, the growth of revenue is only 7 %, but the giant of Redmond is confident in the development of its new formula of subscription, Dynamics 365, for new customers to adopt widely.
For LinkedIn, the figures are rather incomplete due to the late date of the completion of the redemption. Thus, only the revenue generated by the social network between the 8 and the 31 December have been recorded, which represents $ 228 million. During this time, the company generated $ 201 million of operating losses, but will have to see to what extent expenses related to the integration of Linkedin at Microsoft have not disturbed the balance sheet. See you at the next quarter to ensure this.
head in The clouds
The branch Intelligent Cloud has somewhat stalled over the last quarter, with an increase of 8 % of its turnover which amounted to 6.86 billion dollars, but operating income down 7 %, to 2.40 billion.
The bulk of the decline would be on the side of the services business, whose revenue fell 4 % year on year. The main cause of this decline is the decrease in the revenues from the custom support of Windows Server 2003. A situation partly offset by an increase in the side of the support “First” and consulting.
on the side of The cloud-based services and products with dedicated servers, the turnover increased by 12 % and it is in very large part thanks to Azure, whose income – once again – are not far away to register a growth to three digits (+93 % year on year).
Windows laughs, the Xbox is still looking for it
Concerning the branch More Personal Computing (MPC) the results are much more mixed. On the one hand, revenues were down 5 % to 11,82 billion dollars, but on the other hand, the operational profit explodes and reaches up to 2.50 billion, up 33 % year on year.
One of the explanations of this sudden rebound is on the side of the phones. Microsoft has very clearly been released its efforts in this area, by separating, especially a few months ago, 1300 people who were working on the subject. What significantly reduce expenses, even if the direct consequence is a fall of 81 % of the sales of phones on a year.
on The Windows side, the good news is with a increase of 6 % of the sales license Pro to and 5 % for licensing non-pro at the destination of the OEM. In regard to the increase in sales to individuals, it is still 5 %. Microsoft does not give any precision on the number of machines operator Windows 10, ensuring only that it increases, with no say in what proportions.
The section Gaming benefits from greater transparency. There is still no question for the brand to disclose the number of Xbox One sold since its launch, but we will learn all the same that it has achieved a turnover of approximately 3.5 billion dollars. The transactions on the platforms house (Xbox Live and Windows Store) for games to the cloud, have reached a billion dollars. Another certainty : the sales of consoles have been reduced in the last quarter than the same time last year, despite the launch of the Xbox One’s. It will be interesting to see if Sony notes the same trend with its PlayStation 4.
On the Xbox Live, the number of monthly users (MAU) grew by 15 % and reached $ 55 million. However, this figure takes into account people accessing via mobile platforms or Windows 10. It is therefore not a reliable indicator of the basis of consoles, installed by the brand, or even the number of subscribers to the bouquet ” Gold “.
sales of the surface have declined by 2 % this year and reach 1.32 billion dollars. However, margins have improved by 6 % thanks to the replacement of the Surface 3 by the Surface Pro 4 and Surface Book in the ranking of the best sales of the brand.
Finally, Bing has also achieved good scores in the last quarter, with an increase of 10 % of its income excluding the costs of acquiring traffic. A performance at times due to a hearing in progress and a better income by research. The profitability of the motor is also on the rise, particularly thanks to the renegotiation of the agreement signed with Yahoo.
Wall Street applauded
dung, the investors have welcomed the announcements from Microsoft, which is manifested by an increase of 2 % of the market price of the company on Wall Street, while the NASDAQ is at the point of death. The giant of Redmond is valued at 515 billion, or 28 % more than a year ago.
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