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SAP Third Quarter Operating Profit Beats Estimates on Mature Markets

SAP Third Quarter Operating Profit Beats Estimates on Mature Markets

By Reuters | Updated: 13 October 2015 11:21 IST

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SAP, Europe's biggest software maker, on Tuesday reported a 19 percent rise in third-quarter operating profit, excluding special items due to growth in its mature markets.

SAP said third-quarter operating profit, excluding special items, rose to EUR 1.62 billion (roughly Rs. 11,950 crores), beating the most optimistic estimate among 14 analysts, with individual estimates ranging from EUR 1.45 billion to 1.59 billion, according to Thomson Reuters data.

Europe's largest software maker said it was sticking to its outlook for the full year for non-IFRS operating profit of EUR 5.6 billion to EUR 5.9 billion at constant currencies, which represents flat growth to a rise of as much as 5 percent from EUR 5.6 billion last year.

"Our strong double-digit growth in cloud and software revenue was mainly driven by excellent results in mature markets," SAP's Chief Financial Officer Luka Mucic said in a statement, adding that he expected continued volatility and economic challenges in emerging markets.

SAP, whose customers include the world's biggest multinationals, specialises in business applications ranging from accounting to human resources to supply-chain management.

Like established rivals such as Oracle, IBM and Microsoft, SAP is striving to boost Internet-based sales to head off fast-growing newer competitors such as Workday and Amazon.com's web software unit.

SAP said its cloud subscriptions and support revenue more than doubled to EUR 600 million in the third quarter.

Third-quarter total revenue of EUR 4.98 billion was slightly ahead of the average expectation of 4.93 billion.

SAP released its key results ahead of the scheduled release data on October 20.

© Thomson Reuters 2015

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