Microsoft has reported an 8.6% rise in revenues for its Entertainment and Devices division in its first-quarter results.
The division, which looks after the Windows Phone and Xbox business, reported revenues of almost $2bn (£1.3bn) for the first three months of the financial year to 30 September 2011.
Revenues were reported at $1.963bn (£1.244bn), up from $1.795bn (£1.137bn) for the same period last year. However, operating income in the division fell almost 9% from $386m (£245m) to $352m (£223m).
Overall, Microsoft earned $5.7bn (£3.6bn) for its fiscal first quarter. That compared with net income of $5.4bn (£3.4bn) at the same time last year. Revenue increased 7% from last year to $17.37bn (£10.9bn).
‘We had another strong quarter for Office, SharePoint, Exchange, and Lync, and saw growing demand for our public and private cloud services including Office 365, Dynamics CRM Online, and Windows Azure,’ said Kevin Turner, COO at Microsoft.
‘With a great set of consumer products like Windows 7 PCs, Windows Phone 7.5, Xbox and Kinect, we are excited about the holiday buying season.’
Microsoft is pumping almost £28m into its seasonal activity to promote its new Mango handsets. The first Nokia devices are set to be unveiled next week at Nokia World in London.
HTC has already unveiled two Windows Mango devices, the Radar and Titan. Samsung has the Omnia W in the pipeline, while LG also has a Mango handset in the works.
However, the software giant has an uphill battle to promote its operating system. In Q2 2011, Microsoft had just 1.6% share of the global smartphone market, according to analyst Gartner. This figure was down from 4.9% in the same quarter of 2010.