Stuttgart (Reuters) – The switch from license sales to rental software from the Internet burdened earnings growth at SAP.
Operating income at constant currency in the second quarter of one percent to 1.39 billion euros, the DAX company said on Tuesday. Thanks to the euro’s weakness is the plus amounted to 13 per cent and thus remained one percentage point behind the forecast surveyed by Reuters analysts. Sales of the world’s market leader for software companies control rose currency-adjusted by eight percent to 4.97 billion euros. The result is growing at SAP slower because rent with the switch to cloud software, the customers via the Internet, the cost initially increase and the profit is spread over a longer period.
SAP provides its investors accustomed to success, therefore, since this year no longer rising yields in prospect. From January to June, the operating margin shrank to also not adjusted for four percentage points to 14.1 percent. For the full year 2014, it had amounted to 32.1 percent. The rise was the cost of the acquisition of American cloud companies like the last travel and expense management specialist Concur. The employees there have higher claims to stock options as SAP employees in Europe.
Worldwide builds SAP simultaneously from hundreds of sites in the traditional software business. That pushed the net income for the quarter by 16 percent to 469 million euros. In the first half but was thus the biggest cost factor digested. Next year, no major restructuring more was to be expected, said Chief Financial Officer Luka Mucic.
The current than promising business with the rental software built SAP in the second quarter jumped from: Sales of cloud programs was 555 million euros, more than twice as high as a year earlier. The still much larger business with traditional software licenses, however grew by only three per cent.
SAP reaffirmed its annual projections: Operating profit should amount to 5.6 to 5.9 billion euros, from 5.6 billion euros in 2014. The exchange rate effect is to increase the current estimate the operating profit by seven to ten percentage points – slightly less than
adopted three months ago.
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