SAP (SAPG.DE), 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.
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Revenue for the three months ended September increased by 17%, to 4.99 billion euros from 4.26 billion euros for the year ago period, according to a statement.
The company also provided an operating profit figure of EUR1.62 billion, based on calculations that aren’t recognized under global financial reporting standards. Becker was of the view that SAP’s report is an impressive show after Oracle performance came public and also because of weak emerging markets.
Analyst Daud Khan at Berenberg said that the fourth-quarter remained critical for SAP to reach its full-year targets.
SAP Chief Executive Bill McDermott has over the past year accelerated the company’s move away from on-premise software to Internet cloud based offerings through a series of acquisitions.
Software license sales grew 4 percent in constant currency to 1.02 billion euros, a respectable showing at a time when sales of licensed programs installed on customers’ servers are under pressure industry wide.
Oracle, with a projected $37.8 billion in sales this year, is still nearly twice SAPs size, and its market-leading database sharedwarfs that of SAPs competitive Hana product.
Cloud subscription and support sales during the quarter more than doubled to 600 million euros, compared with the 577 million-euro average estimate of six analysts.
Third-quarter complete income of 4.ninety eight billion euros was barely forward of the typical expectation of 4.ninety three billion. The sales and operating profits is more than what analysts have expected.
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“Our strong double-digit growth in cloud and software revenue was mainly driven by excellent results in mature markets”, said chief financial officer Luka Mucic.
