Microsoft Online Division Revenues Improve, But Remain at a Loss

Microsoft has reported its Q2 2009 earnings (Q4 for many other companies) and the news is mixed for their online services division. Revenues improved over the previous quarter, but came in at a 5% loss year-over-year.

Specifically, online revenues for Q2 came in at $581 million, compared to $609 million the year prior. Q2 losses came in at $466 million compared with $320 million in Q2 2008.

The loss was blamed on a decrease in overall online advertising revenues. However, the silver lining was that Bing brought a growth in search revenues for Microsoft.

If Bing continues to grow, then Microsoft will do well to capitalize on its strengths to build a stronger online services division. Of course, the deal with Yahoo! should help as well.

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