Microsoft profits jump 17pc to $5.2bn

Microsoft profits jump 17pc to $5.2bn

Microsoft’s revenue from its Surface tablets hit $ 400m, representing a gain in revenue and unit sales from the quarter that ended in June, though profitability in the division that houses Surface fell. It’s the first time the company has broken out Surface results.

Revenue from its flagship Windows operating system from manufacturing partners declined, while enterprise software business grew.

Commercial licensing – representing enterprise products like Windows Server and System Center – is now by far Microsoft’s biggest reporting segment. Its revenue rose 7pc to $ 9.59bn. Devices and consumer licensing revenue, containing revenue from Windows and Windows Phone, fell 7pc to $ 4.34bn.

It has been a busy year for Microsoft. Last month, it vowed to acquire Nokia’s smartphone business for $ 7.2bn and this month it launched sales of the latest version of its Surface tablets. Next month it will launch its latest game console, Xbox One.

The transformation of Microsoft’s business is crucial as sales of personal computers – once Windows’s mainstay – continued to fall. Research firm IDC said that global shipments of PCs fell 8pc in the third quarter of the year for the sixth straight decline. Another firm, Gartner, put the decline at almost 9pc.

Microsoft’s shares rose $ 1.93 to $ 35.65 in extended trading following the release of the earnings report.

(Edited by Andrew Trotman)

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