It’s no secret that Microsoft’s online businesses are losing money; the company’s online services business posted a $2.3 billion loss during the company’s most recent fiscal year, which ended in June. But a Microsoft (NSDQ: MSFT) slide deck breaks down for the first time exactly how much red ink some specific Microsoft properties are spilling.
Among them: Microsoft’s Windows Live group — which includes Hotmail and Messenger — lost $560 million last year on $520 million in revenue. Meanwhile, Razorfish, the company’s interactive marketing agency, lost $50 million on $360 million in revenue. That means that Razorfish’s sales dropped by about 5 percent last year, since Microsoft had previously disclosed that Razorfish’s revenue was $380 million in 2008. Microsoft sold the agency to Publicis last month for $530 million.
It’s difficult to extrapolate how the other properties in the online business — namely Bing and MSN — are performing. But it is widely known that both are losing money for Microsoft.
Microsoft released the details because it is changing the structure of its online services business, which it has renamed the online services division. The Windows Live properties are being moved to Microsoft’s flagship Client division, which includes Windows, while Razorfish’s results are being classified as “corporate.” (Via Seattle Times)