Microsoft sees Mediaroom revenues decline in Q209

Microsoft saw revenues from all five of its business divisions decline in the second quarter of this year, with its Entertainment and Devices Division (EDD) suffering primarily from decreased Mediaroom and Zune revenues during the period.

Revenue generated by its Entertainment and Devices Division from non-gaming activities fell 42% year-on-year in the second quarter of this year, while as a whole the division saw its revenues slide 25% by the same comparison to reach US$ 1.189bn, salvaged by sales of its Xbox 360 games console, which were nonetheless down slightly to 1.2mn units shipped in the period.

The company's Client division, which makes Windows for PCs, posted a 29% year-on-year decline in revenue to reach US$ 3.1bn for the second quarter of this year, while operating profits fell 33% by the same comparison to reach US$ 2.1bn. The company attributed the revenue decrease to weak sales of PCs, and particularly sales to businesses.

Microsoft's Server & Tools Division posted a 6% fall in quarterly revenue, reaching US$ 3.5bn, while operating income for the division fell 1% by the same comparison to reach US$ 1.349bn.

Its Online Services Business saw revenues fall 13% year-on-year to reach US$ 731mn, while the division's operating loss widened to US$ 732mn for the quarter. Online advertising revenue fell 14% to reach US$ 529mn, attributed mainly to display advertising.

Microsoft's Business Division, which makes Office and related products, was also affected by tough economic conditions and decreases in business and consumer spending. Revenues for the division fell 13% to reach US$ 4.564bn, while operating income fell 16% to reach US$ 2.816bn.

Across all operations, the company's revenues fell 17% year-on-year to reach US$ 13.1bn for the second quarter of this year, while operating income fell 30% by the same comparison to reach US$ 3.99bn.



In recent Mediaroom news, du (one of the two major telcos in the United Arab Emirates) has successfully launched an updated version of its IPTV service called 'du TV+' on July 1st, powered by Microsoft Mediaroom and offering new features such as simplified search and display, instant channel change and time-shifting, and high-definition content.