Microsoft Ad Revenues Bulge


girlglass.jpgMicrosoft is enjoying a 33% in increase in its Online Services division at the end of the quarter, which includes display ad and advertising business.

The wrap-up stats show operating income in Online Services had a loss of $239 million from $187 million this time 2006, as well as a loss of $732 million for the year over $74 million last year. However Online Services made $688 million in the first quarter up over $580 million at this point last year. This brought the end of the year revenues to $2.5 million over $2.3 million the year before.

The company revenues overall for the first quarter resulted with $13.4 billion, which is a 13% increase from 2006. There was also a 15% growth for the fiscal year at $51.12 billion.

With a 33% increase in ad revenue, the acquisition of aQuantive makes executives confident that the growth will only continue. Senior vice president and chief financial officer for Microsoft, Chris Liddell said, “These acquisitions represent an important next step as we build out our central advertising platform. We will continue to build out our data services for Online Services.”

There is a speculated growth rate of 20% for the next fiscal period according to the company, who will officially close on their acquisition of aQuantive this next month.
Liddell concluded, “Overall, having revenue of advertising growing at better than 20% is a good starting stage.”


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