Microsoft Made $24 Billion In The Second Half Of 2020, Up 31.5 Percent
2021-01-27 | by CusiGO
Covid-19 restrictions and restrictions make Microsoft profitable in 2020. The multinational reported late Tuesday that Redmond, the US computer giant, made a net profit of US $29.356 billion (24.152 billion euros) in the first six months of its fiscal year (July December), up 31.5% from the first half of fy2019. The company’s performance has exceeded investors’ expectations, with its shares up 5% after announcing a price to earnings ratio of nearly 41% by 2020.
Microsoft’s gold mine is its azure cloud service application, and its business has grown by 50%. In the past few months, he has also highlighted LinkedIn, a social network focused on the working world, and the company’s video games division, which launched its video game console in November, taking advantage of the temptation of Christmas. Gamepass, the company’s monthly subscription to video games, currently has 18 million users, compared with 15 million in September, while xbox live, the online game service, has more than 100 million active users each month.
Microsoft’s revenue in the first half of the year was 80.23 billion US dollars (66.009 billion euros), an increase of 14.7% over the same period last year, of which the productivity increased by 12% to 25.672 billion US dollars (21.119 billion euros); the cloud business increased by 21.4% (including Azure), Sales of personal computers (including windows, Bing or Xbox Console) increased by 10.8% to US $26.971 billion (22.187 billion euros).
Norihiro fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities, told Reuters that although technology companies are expected to strengthen by 2020, Microsoft’s performance is even better than expected. “Even compared with the strong expectation of the market, Microsoft’s profit is amazing.” “The share prices of these technology companies have been falling slightly since August, but given their strong prospects, they are likely to lead the market again,” he added.
In the last phase of this year, Microsoft’s profit growth is even stronger. From October to December 2020, it achieved a net profit of US $15.463 billion (EUR 12.722 billion), an increase of 32.7% over the same period in 2019. The revenue of multinational companies was US $43.076 billion (35.44 billion euros), an increase of 16.7%.
“What we’ve seen in the past year is the dawn of a second wave of digital transformation, sweeping all businesses and industries,” said Satya NADELLA, chief executive of Microsoft.
Looking ahead to the third quarter of the fiscal year (January to March 2021), Microsoft plans to surpass expectations again and achieve cloud revenue of US $14.83 billion (12.33 billion euros), while market analysts forecast US $14.12 billion (11.645 billion euros). It also wants to exceed expectations in the areas of productivity and personal computing.