Despite sluggish results in its internet business, Microsoft yesterday reported a 24 percent increase in profit, with net income at $3.14 billion, or 29 cents a share, compared with $2.53 billion, or 29 cents a share, for the same period last year, reports the Mercury News. But the software giants is struggling in its competition with Yahoo and Google for online advertising. Its MSN unit reported revenue of $564 million, a mere one percent increase from the same period a year ago.
However, MSN ad revenues increased $60 million, or 20 percent, in the first quarter of its 2006 fiscal year, compared with the same period last year, writes ClickZ. That growth is mostly attributable to strong performance of display ads on MSN's portals, channels, email, and messaging services worldwide.
Microsoft said paid search doesn't yet account for a significant portion of ad revenues, saying it was experiencing "pressure" on search advertising prices. It is pinning its hopes on adCenter, which is now being tested in the U.S.
