MSN Ad Revenue Rises 43 Percent

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Microsoft's MSN unit returned a profitable quarter in the first three months of the year, thanks to strong demand for search listings and online advertising, the company said last week.


Overall revenue at MSN grew 16 percent over the same period a year ago to $561 million. Microsoft said online sales grew 43 percent in the quarter. Internet ad sales made up for a $17 million decline in subscription revenue from dial-up customers.


Microsoft did not break out MSN's profit.


MSN benefited from increased spending on paid search, which it provides through its partnership with Yahoo's Overture Services unit. Yahoo reported a blockbuster first quarter this month, with 50 percent organic growth in marketing services.


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