Microsoft Corporation has reported financial results for the second quarter of fiscal 2021, which ended December 31, 2020. This period proved to be very successful for the company, as the ongoing COVID-19 pandemic is driving an increase in Microsoft products. This growth is especially pronounced in the areas of Intelligent Cloud and Business Productivity. Also, the launch of the next-generation Xbox Series X and S game consoles has had a very positive impact on the gaming business results.
Microsoft received a combined income of $43.1 billion in the reporting period, which is 17% more than in the same quarter last year. Overall, except for Windows OEM and Surface, revenues across all Microsoft businesses grew by double digits.
Forced work from home has led to increased Office 365 and Dynamics 365 services offered by the Intelligent Cloud division. Azure usage has also increased significantly. As a result, the Intelligent Cloud division generated $ 14.6 billion in revenue, with an annual growth rate of 23%. Strong demand for Dynamics products led to a 13% increase in revenue for the Productivity and Business Processes division to $ 13.4 billion.
The launch of Microsoft’s Xbox Series X and S game consoles boosted hardware sales by 86% over the second quarter of the previous fiscal year. Revenues from the sale of Xbox services and content also increased significantly. Specifically, Xbox Game Pass revenues increased by 40%, and Game Pass subscribers reached 18 million users. Overall, revenues for the Microsoft Xbox division increased 51% to $ 5 billion. This is the best result in the history of the Microsoft Xbox division. Thus, the company was able to improve the performance of one of its weakest divisions significantly.
According to the results of the second quarter of fiscal 2021, Microsoft Corporation received a net profit of $ 15.5 billion, an increase over the same period last year that amounted to an impressive 33%. Profit per share was $ 2.03. This figure turned out to be significantly higher than analysts’ expectations ($ 1.64) and 34% more than in the second quarter of fiscal 2020. After the publication of financial statements, the value of Microsoft shares rose by 9 percentage points.
A source: wccftech