logo
Share SHARE
FONT-SIZE Plus   Neg

SAP Q1 Profit Rises 10%, Reaffirms Full Year Outlook - Update

German business software maker SAP AG (SAP) on Wednesday reported a 10 percent increase in profit for the first quarter, and reiterated its full year outlook.

"We see strong momentum for our flagship in-memory platform SAP HANA, our cloud and mobile solutions, and our core applications and analytics products," said Bill McDermott and Jim Hagemann Snabe, Co-CEOs, SAP.

On the basis of International Financial Reporting Standards, SAP's profit attributable to owners of parent increased to 444 million euros ($587 million) or 0.37 euros per share from 403 million euros or 0.34 euros per share in the year-ago quarter.

Non-IFRS profit attributable to owners of parent rose to 583 million euros from 528 million euros in the prior year.

Total IFRS revenue for the three-month period improved to 3.35 billion euros from 3.02 billion euros in the previous year.

Software and software-related service revenue increased 13 percent to 2.62 billion euros with a 14 percent growth in Support revenue. Software revenue advanced 4 percent.

Cloud subscriptions and support revenues surged to 29 million euros from 4 million euros.

Non-IFRS revenue climbed to 3.36 billion euros from 3.04 billion euros in the prior year. Software and Software-related service revenue advanced 12 percent to 2.63 billion euros.

Werner Brandt, CFO of SAP, said, "We reported our ninth consecutive quarter of double-digit growth in non-IFRS software and software-related service revenue, with a strong contribution from SuccessFactors to our cloud business."

Looking ahead to the second quarter, SAP expects software revenue to increase in a range of 15 percent to 20 percent at constant currencies, compared to 838 million euros generated last year. The company also expects non-IFRS software and software-related service revenue to increase in a range of 14 percent to 16 percent at constant currencies from last year's 2.59 billion euros.

Further, SAP reiterated its forecast for the year. The company expects full-year non-IFRS software and software-related service revenue to increase in a range of 10 percent to 12 percent at constant currencies. Also, the company expects non-IFRS operating profit to be in a range of 5.05 billion euros to 5.25 billion euros at constant currencies.

SAP is currently falling 0.47 percent at 49.06 euros on a volume of 1.52 million shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Major League Baseball is talking expansion for the first time in a few decades. Owners stand to make a pretty penny from expansion fees and subsequent television rights. The possibility of a more balanced schedule is also enticing. Strong expansion candidates in the U.S. and Canada are ready... The New York Times is teaming up with Google again to give away Google Cardboard, the virtual reality headsets, but this time only to its "most loyal" digital subscribers. The company said that the digital-only subscribers selected for this distribution were chosen based on the duration of their subscriptions. Oil company Exxon Mobil Corp. on Friday reported a 63 percent fall in profit for the first quarter from last year, while Chevron Corp. reported a loss for the quarter, both on lower revenues. The results were impacted by the fall in crude oil prices and weaker refining margins. However, Exxon Mobil's earnings beat analysts' estimates, while Chevron's loss was wider than their expectations.
comments powered by Disqus
Follow RTT