MSN Turns First ProfitMicrosoft said its longtime money-losing portal MSN turned its first quarterly profit, buoyed by strong demand for online advertising and a booming paid search market.
In a regulatory filing Nov. 13, Microsoft, Redmond, WA, said MSN's revenue grew 15 percent to $491 million in the quarter ended Sept. 30, letting it return a $58 million operating profit. A year ago, the portal lost $147 million.
Ad revenue rose 50 percent from the previous quarter, which Microsoft attributed to sales of both general advertising and paid search through its partnership with Overture Services. MSN recently extended its deal with Overture through June 2005, despite rival Yahoo now owning Overture.