Looks like Microsoft might be a little behind in earnings compared with last years revenues. ClickZ has reported that last year MSN hit $598 million, and this year at the same time they are at $580 million in revenue.
This is supposedly mostly due to to the large amounts MSN has been dumping into the Live.com search property, adCenter, and MSN search in general.
MSN has stated that it is transitioning into home grown ads with MSN's adCenter as opposed to its previous sponsored ads. Microsofts CFO said in a conference call with investors that they are aiming at having 100% of their business targeted on adCenter. Thus Microsoft is planning on spending over $500 million in developing its online services portion of their business. Including Live.com, and Search.
MSN does not expect to be profitable in 2007 due to these spends on investments.
