SAP stated third-quarter operating profit, excluding particular gadgets, rose to 1.sixty two billion euros ($ 1.eighty four billion), beating probably the most optimistic estimate amongst 14 analysts, with particular person estimates starting from 1.forty five billion to 1.fifty nine billion euros, in accordance with Thomson Reuters knowledge.
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Non-IFRS operating profit for the quarter was 1.62 billion euros, an increase of 19% from the previous year’s 1.36 billion euros, while it was up 15% at constant currencies.
Chief Financial Officer Luka Mucic said September 10 the company was on target to meet its 2015 financial goals and that he saw no need in the foreseeable future for big acquisitions.
SAP shares were 3 percent higher by 0915 GMT after earlier hitting their highest level in two months.
SAP, whose customers include the world’s biggest multinationals, specialises in business applications ranging from accounting to human resources to supply-chain management.
SAP is also reportedly trying to boost its Internet-based sales to combat fast-growing newer competitors like Workday and Amazon’s web software unit. Cloud software makers argue that in the longer term they can make up the shortfall through subscription and services revenues. Analysts had predicted operating profit of 1.53 billion euros on sales of 4.93 billion euros, according to data compiled by Bloomberg.
Revenues from cloud subscriptions and support soared by 116 percent to 0.6 billion euros. In the second quarter licence revenues were down 7 percent at constant currencies.
SAP released its key results ahead of the scheduled release data on October 20.
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“Investors’ overall impression is that despite pressures in Brazil and Russian Federation, the licence business is holding up”, the analyst said in a client note.
