(News Bulletin 247) – SAP announced on Friday that it had made a “good start to the year” by signing an acceleration in the growth of its turnover and a double-digit increase in its operating profit (non-IFRS) .
Excluding exceptional items, operating profit increased by 12% in the first quarter, at constant exchange rates, to reach 1.87 billion euros against 1.67 billion a year earlier.
This performance is broadly in line with the consensus, which targeted 1.84 billion.
Operating profit within the meaning of IFRS stands for its part, down 45% to 803 million euros due to the increase in costs related to its stock option plans against a background of rising stock market prices.
Quarterly revenue rose 10% to 7.44 billion euros, in line with consensus, on the back of a 24% rise to 3.18 billion euros in revenue in the ‘ cloud’.
Dominik Asam, the new chief executive from Airbus, said the performance puts the group in a good position for its goal of “profitable growth” in 2023.
Due to the planned sale of Qualtrics, its survey platform subsidiary, the European number one in software has nevertheless revised its annual forecast downwards.
Its non-IFRS operating profit target thus increases to 8.6-8.9 billion euros, against 8.8-9.1 billion until now, while its annual cash flow is now expected around 4 .9 billion euros, against five billion previously.
On the Frankfurt Stock Exchange, SAP shares fell 0.1% on Friday following the publication of these figures, while the DAX index lost 0.4% at the start of the session.
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