Microsoft reports solid Q1 revenues of $20.4bn driven by Azure and Office 365

22 Oct 2015

Microsoft CEO Satya Nadella. Photo via Bhupinder Nayyar via Flickr/ (Creative Commons)

Software giant Microsoft reported profits of $4.6bn on a solid first quarter with revenues of $20.4bn driven by gains in Azure, Office 365 and Windows Server products.

In the new financial reporting structure, revenues from Productivity were up 4pc in constant currency to $6.3bn, including increases in sales of Office and cloud services and a whopping 70pc growth in Office 365 revenues. Office 365 consumer subscribers increased by 3m users to 18.2m users.

Revenues from Intelligent Cloud were up 14pc in constant currency to $5.9bn as Azure revenues more than doubled year-on-year and Enterprise Mobility customers doubled to more than 20,000 and the installed base grew sixfold.

However, revenue from More Personal Computing declined 13pc to $9.4bn due to declines in Phone revenue by 54pc and Windows OEM revenue by 6pc. Search advertising grew 29pc while Xbox Live active customers grew 28pc to 39m.

Deliver innovation people love, says Microsoft CEO

“We are making strong progress across each of our three ambitions by delivering innovation people love,” said Satya Nadella, chief executive officer at Microsoft.

“Customer excitement for new devices, Windows 10, Office 365 and Azure is increasing as we bring together the best Microsoft experiences to empower people to achieve more.”

During the quarter, Microsoft announced a 16pc increase in its quarterly dividend to $0.36 and returned $6.9bn to shareholders in the form of share repurchases and dividends

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years