Microsoft reports Q4 revenues of £26bn despite gaming slump

Microsoft has revealed its total revenues for the fourth quarter jumped 12% to $33.7bn (£26.7bn), despite struggles at its gaming division.

For the three month period ending 30 June, the technology company also recorded a 20% increase in operating net income to $12.4bn (£9.9bn).

Microsoft attributed the growth to the strong performance of its cloud-services. It said its revenue in productivity and business processes was $11bn (£9bn) an increase of 14%.

This was boosted by its office commercial products and cloud services revenue increasing by 14% driven by Office 365 commercial revenue growth of 31%. Its Office 365 consumer revenue also increased by 6% with its Office subscribers now totalling 34.8 million

However this growth was slightly offset by a 10% decline in its gaming revenue with Xbox software and services revenue down 3%. Over the full fiscal year, Microsoft’s total revenues reached $125.8bn (£112bn), a 14% increase on the previous year.

Satya Nadella, chief executive officer of Microsoft, said: “It was a record fiscal year for Microsoft, a result of our deep partnerships with leading companies in every industry. Every day we work alongside our customers to help them build their own digital capability – innovating with them, creating new businesses with them, and earning their trust.

“This commitment to our customers’ success is resulting in larger, multi-year commercial cloud agreements and growing momentum across every layer of our technology stack.”