Microsoft quarterly profit slips but tops expectations

Microsoft shares rallied Thursday after the tech colossus reported quarterly profit was down but better than Wall Street had expected.

PHOTO: BLOOMBERG

JAN 29, 20166:55 AM

[SAN FRANCISCO] Microsoft shares rallied Thursday after the tech colossus reported quarterly profit was down but better than Wall Street had expected.

Microsoft said that it made a profit of US$5 billion on US$23.8 billion in revenue in the final three months of last year.

The company's shares rose more than three per cent to US$54.08 in after-market trades.

"It was a strong holiday season for Microsoft highlighted by Surface and Xbox," said chief operating officer Kevin Turner, referring to the company's tablet computer family and gaming console.

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"Our commercial business executed well as our sales teams and partners helped customers realize the value of Microsoft's cloud technologies." Software offered as a service in the Internet cloud has been a key aspect of the technology veteran's effort to adapt to a shift away from packaged software on which the US company was built.

Revenue from Microsoft Azure, which challenges cloud king Amazon Web Services, more than doubled while its overall "Intelligent Cloud" unit grew five percent to US$6.3 billion, according to the earnings report.

"Businesses everywhere are using the Microsoft Cloud as their digital platform to drive their ambitious transformation agendas," said Microsoft chief executive Satya Nadella.

"Businesses are also piloting Windows 10, which will drive deployments beyond 200 million active devices." Microsoft began rolling out its Windows 10 last year, aiming to revive the tech giant's fortunes, with the new operating system that aims to be seamless across traditional computers and mobile devices such as tablets and smartphones.

The number of people using Xbox Live online service for digital content and video game play climbed 30 per cent to a record high of 48 million, Microsoft said.

Meanwhile, revenue from Windows operating system declined but outperformed the overall personal computer market, according to the Redmond, Washington-based company.

Windows remains the dominant PC platform but Microsoft has lagged rivals Apple and Google to power mobile devices such as tablets and smartphones.

Surface tablet computers were a bright spot for Microsoft, with revenue increasing 29 per cent on the backs of the launch of Surface Pro 4 and Surface Book, according to the earnings report.

AFP

    
 

Facebook expands live video streaming

On the heels of posting stellar quarterly earnings results, Facebook on Thursday expanded its offering for streaming live video at the leading social network. 

PHOTO: REUTERS

JAN 29, 20167:08 AM

[SAN FRANCISCO] On the heels of posting stellar quarterly earnings results, Facebook on Thursday expanded its offering for streaming live video at the leading social network.

A "Live" feature that Facebook began testing late last year became available to anyone in the US accessing the service using the California-based company's iPhone application.

"It has been inspiring to see all the ways that people have used Live to connect with their friends and family," Facebook product manager Vadim Lavrusik said in a blog post.

"We're excited to expand the ability to share live video to everyone in the US via iPhone, and we plan to start rolling this out to the rest of the world over the coming weeks."

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The feature allows people to "broadcast" live to viewers at the social network, with streams digitally recorded and saved in a broadcaster Facebook timeline just like posted video, according to Lavrusik.

Live videos can be found in News Feed at Facebook accounts, and people can subscribe to friends or public figures to be notified about live broadcasts.

Public figures were invited last year to use Live, which Lavrusik described as being "like having a television studio in your pocket." Facebook said it is working on a version of Live for smartphones powered by Google-backed Android software.

The Facebook feature comes as a rival to live-video streaming mobile apps Meerkat and Periscope, which is owned by Twitter.

Facebook shares were up more than 16 per cent to US$109.87 as the close of trading neared on Thursday.

The stock price surge came a day after the social network trounced Wall Street expectations with word that its quarterly profit more than doubled as its ranks swelled during the past year to a mammoth user base of nearly 1.6 billion.

The company reported a profit of US$1.56 billion in the final three months of 2015 as compared with making US$701 million in the same period a year earlier.

Revenue in the quarter that ended on December 31 rose to US$5.84 billion from US$3.85 billion the prior year.

The results showed Facebook's growing power in online advertising, especially on mobile devices. Mobile accounted for about 80 per cent of the network's ad revenue in the quarter.

Net profit for the full year climbed to US$3.7 billion from US$2.9 billion in 2014, while revenue jumped to US$17.9 billion from US$12.5 billion.

AFP

    
 

UK announces help for struggling North Sea oil industry

      

Britain announced on Thursday a £250 million (S$513 million) package of funding to boost the oil industry in northeast Scotland, which has been hit hard by slumping prices. 

PHOTO: REUTERS

JAN 29, 20167:12 AM

[LONDON] Britain announced on Thursday a £250 million (S$513 million) package of funding to boost the oil industry in northeast Scotland, which has been hit hard by slumping prices.

Prime Minister David Cameron visited the oil city of Aberdeen and met industry bosses for talks on the current situation.

"Obviously it's a difficult time for the oil industry because of the oil price decline, but what this shows is that the British government is 100 per cent behind this industry, behind Aberdeen, behind Scotland," Mr Cameron said.

"We want to see this port expand, we want to see an energy innovation centre, we want to help Aberdeen to diversify its industrial base," he said.

Scotland's First Minister Nicola Sturgeon welcomed the announcement and said that the Scottish government would add £254 million in funding to improve infrastructure in the region over the next five to ten years.

Global oil prices fell by more than 30 per cent in 2015 and have dropped by another 20 per cent this year amid increasing production and weaker demand.

In London, Brent North Sea crude for March, the European benchmark for crude oil, is currently at US$34.24 a barrel, down from highs of over US$100 in 2014.

"We very much welcome Prime Minister David Cameron's visit to Aberdeen and his recognition of the seriousness of our situation," said Deirdre Michie, head of Oil and Gas UK, an industry body.

"While the oil and gas sector is under severe pressure globally, due to the current oil glut and price collapse, it is being felt particularly forcefully on the UK Continental Shelf (UKCS), which is a mature basin with its own particular difficulties and cost challenges," she said.

"Companies are doing all they can to bring down costs and be more efficient, but many are still having to make difficult decisions," she added.

The funding is expected to be used to help the oil and gas industry export its expertise globally as well as encouraging economic diversification in northeast Scotland.

It has been committed equally by the government in London and the devolved Scottish administration based in Edinburgh and led by the pro-independence Scottish National Party (SNP).

Oil and gas production in Britain rose by over seven percent last year, the first increase in over 15 years, Oil & Gas UK said this month.

The Oil and Gas Authority (OGA) earlier estimated that the sector has lost 65,000 jobs - 15 per cent of its workforce - since the start of 2014.

AFP