// Microsoft revenue rises from £23.8bn to £26.7bn for the 3 months to June 30
// It reported a net income of £10.4bn for the period
// Its cloud computing service achieved revenue of £9bn – an increase of 39% year-on-year
Microsoft has revealed its total revenue for the fourth quarter has experienced strong growth, despite Xbox sales slowing down.
For the three months to June 30, total revenue rose from $30.1 billion (£23.8 billion) to $33.7 billion (£26.7 billion).
The tech giant, which also has a direct-to-consumer retail arm, also reported a net income of $13.2 billion (£10.4 billion) for the period.
Microsoft said the growth primarily came from its service offerings, including cloud computing which achieved revenue of $11 billion (£9 billion) – an increase of 39 per cent year-on-year, as well as its partnerships.
Meanwhile, Office Consumer products and cloud services revenue increased six per cent, with Office 365 Consumer subscriber numbers rising to 34.8 million.
Microsoft’s acquisition of LinkedIn in 2016 also paid off well as revenue for the social network jumped by 25 per cent.
However, Xbox revenue dropped by 10 per cent during the period.
Xbox hardware revenue declined by 48 per cent, which Microsoft blamed on a decrease in gaming console sales.
“It was a record fiscal year for Microsoft, a result of our deep partnerships with leading companies in every industry,” Microsoft chief executive Satya Nadella said.
“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.”
The tech company opened its first flagship store in the UK earlier this month.
The 21,932sq ft store is located on London’s Regent Street – just yards away from long-time competitor Apple.
“London has been on the road-map for Microsoft for many years,” store manager John Carter told Retail Gazette.