Microsoft's Online Division: Flat Growth Rate, Still Burning Cash
Microsoft's core software business had another strong quarter--so how about the online division? Bottom line: organic advertising revenue growth of 24% (slight deceleration from last quarter) and cash operating losses of $199 million, a minor improvement.
The first problem with Microsoft's online services division is the name: Microsoft's online services division. MSN, Windows Live, Office Live, MSNBC.com, aQuantive...we'd feel better about the company's chances if it could begin by settling on a brand (or at least a couple of brands).
As for last quarter...
Online revenue jumped 38% to $863 million, for an overall annual run-rate of a respectable $3.4 billion. Of that, $623 million was advertising ($2.5 billion run rate), making Microsoft's ad business one-seventh of Google's size and about one-third of Yahoo's size.
Of the advertising business, which also grew 38% year over year, $112 million came from the aQuantive acquisition. Excluding this, the division's ad revenue grew 24% vs. 25% last quarter. This means Microsoft almost certainly lost more share to Google in the quarter, but may have picked up a small amount against Yahoo.
Most importantly, despite the acquisition of profitable aQuantive, Microsoft's online business is still burning money--$800 million a year (after factoring out some non-cash charges). This is an improvement vs. Q207, when it was losing $1 billion a year, but it's still horrible. Even walloped AOL is still printing money. Microsoft's online successes, such as they are, won't be taken seriously until the company is running a large, organically growing, profitable business.
See Also:
MSN: Still Sucking Wind After All These Years
SAI MSN Analysis Spreadsheet
Microsoft-Yahoo Deal:
How to Structure a Microsoft-Yahoo Deal
One Problem With a Microsoft-Yahoo Deal: MSN is Only Worth $10 Billion
Proof that Microsoft Plans to Buy Yahoo?
Playing the AOL-Yahoo-Microsoft Chess Game
Microsoft-AOL Deal:
Why Yahoo Should Buy AOL
Why Microsoft Will Steal AOL from Yahoo
The first problem with Microsoft's online services division is the name: Microsoft's online services division. MSN, Windows Live, Office Live, MSNBC.com, aQuantive...we'd feel better about the company's chances if it could begin by settling on a brand (or at least a couple of brands).
As for last quarter...
Online revenue jumped 38% to $863 million, for an overall annual run-rate of a respectable $3.4 billion. Of that, $623 million was advertising ($2.5 billion run rate), making Microsoft's ad business one-seventh of Google's size and about one-third of Yahoo's size.
Of the advertising business, which also grew 38% year over year, $112 million came from the aQuantive acquisition. Excluding this, the division's ad revenue grew 24% vs. 25% last quarter. This means Microsoft almost certainly lost more share to Google in the quarter, but may have picked up a small amount against Yahoo.
Most importantly, despite the acquisition of profitable aQuantive, Microsoft's online business is still burning money--$800 million a year (after factoring out some non-cash charges). This is an improvement vs. Q207, when it was losing $1 billion a year, but it's still horrible. Even walloped AOL is still printing money. Microsoft's online successes, such as they are, won't be taken seriously until the company is running a large, organically growing, profitable business.
See Also:
MSN: Still Sucking Wind After All These Years
SAI MSN Analysis Spreadsheet
Microsoft-Yahoo Deal:
How to Structure a Microsoft-Yahoo Deal
One Problem With a Microsoft-Yahoo Deal: MSN is Only Worth $10 Billion
Proof that Microsoft Plans to Buy Yahoo?
Playing the AOL-Yahoo-Microsoft Chess Game
Microsoft-AOL Deal:
Why Yahoo Should Buy AOL
Why Microsoft Will Steal AOL from Yahoo
dgdfg美国旅游，国际打折机票， 国际机票， 国际打折机票， 特价机票fghfghf.
supplier
http://replica-watches-cn.com
replica-watches-cn.com was established in 2003,an onlineshop of a replica watches manufacturer for exporting the international market. Since begining we dedicated to offer our customers with the best replica watches and the most friendly service. Yes, we have earned the trust.we now own many fixed customers all over the world, we have been the friends.They often visit our site even not for buying the watch, they email us for greeting or drop some words. We sincerely thanks for their long-term supports.Over the past 5 years, we have grown to be a large fake watches center by co-operating with other 10 large replica manufactures.Now more than 50 famous brands are available for every appetite buyer,such as Rolex, Omega, Longines,Patek Philippe,LOUIS VUITTON, Piaget, IWC, Breitling, TagHeuer, Cartier, VACHERON CONSTANTIN, Panerai, Bvlgari, Chanel, Chopard, Gucci and so on... We guarantee the lowest prices and the toppest replicas you'll find here.
include
longines watches replica,replica rolex watches ,replica omega watches,replica chanel J12 watches,replica IWC watches,replica VACHERON CONSTANTIN watches,replica GUCCI watches,replica LOUIS VUITTON watches,replica BVLGARI watches,replica PIAGET watches,and so on.
welcome you to our website.
iPod Mac, iPod to Mac Transfer, DVD to iPod converter for Mac, iPod Video Converter for Mac
Video Converter for Mac - 3GP Converter for Mac - AVI Converter for Mac - DAT Converter for Mac - FLV Converter for Mac - M4V Converter for Mac - MOV Converter for Mac - MP4 Converter for Mac - MPEG Converter for Mac - VOB Converter for Mac - iPod Converter for Mac
DVD Creator for Mac - DVD Burner for Mac - AVI to DVD for Mac - DivX to DVD Converter Mac
FLV Converter Mac - FLV to AVI for Mac - FLV to iPod for Mac - FLV to MP4 for Mac - FLV to iPhone for Mac - FLV to Apple TV Mac - FLV to PSP for Mac - FLV to PS3 for Mac - FLV to M4V for Mac - FLV to MOV for Mac - FLV to 3GP for Mac - FLV to ASF for Mac - FLV to MPEG for Mac - FLV to M4A for Mac - FLV to AAC for Mac - FLV to MP3 for Mac
mod converter, YouTube Converter, YouTube Ripper, YouTube to iPod, YouTube Converter for Mac, Free YouTube Downloader