Google net earnings decline, Microsoft returns to profit
Google’s Q2 profit slips to $3.22bn, Microsoft’s Q4 earnings rise to $4.96bn.
Search engine giant Google has reported a decline in net earnings in the second-quarter of 2013, while technology giant Microsoft has returned to profits in the fourth-quarter of 2013.
Google has posted a net income of $3.22bn for the second-quarter ended 30 June 2012, compared to $2.78bn for the same period last year.
Total revenues grew by 19 per cent to $14.10bn (2012: $11.80bn), of which Motorola Mobile division contributed $998m, while advertising and other divisions brought in $13.10bn.
During the quarter, Google-owned sites generated revenues of $8.87bn, while its partner sites generated revenues of $3.19bn.
Larry Page, CEO of Google, said: “Google had a great quarter with over $14 billion in revenue – up 19% year-on-year. The shift from one screen to multiple screens and mobility creates tremendous opportunity for Google. With more devices, more information, and more activity online than ever, the potential to improve people’s lives even more is immense.”
Microsoft has posted a net income of $4.96bn for the fourth-quarter ended 30 June 2013, compared to a net loss of $492m for the same period last year.
Revenues increased to $19.89bn in the fourth-quarter (2012: $18.05bn).
During the quarter, the company’s business division revenue grew by 14 per cent, while revenues of server & tools division and Windows division grew by 9 per cent and 6 per cent respectively.
Amy Hood, CFO of Microsoft, said: “While our fourth quarter results were impacted by the decline in the PC market, we continue to see strong demand for our enterprise and cloud offerings, resulting in a record unearned revenue balance this quarter. We also saw increasing consumer demand for services like Office 365, Outlook.com, Skype, and Xbox LIVE.”
“While we have work ahead of us, we are making the focused investments needed to deliver on long-term growth opportunities like cloud services,” Hood added.