Fatter deals boost SAP earns in Q2
FRANKFURT, Germany (AP) — Fewer but bigger software deals and increased sales to financial and retail companies helped SAP AG post a 12 percent increase in earnings in the second quarter of the year.
The maker of back-office business software said net profits rose to €661 million ($800 million) from €588 million in the same period a year earlier. Revenues jumped 18 percent to €3.898 billion, with double-digit increases in all regions.
SAP said Tuesday it did slightly fewer software deals, but the ones it concluded were worth more. The average value of software orders increased 32 percent. It said software sales revenue rose more than 60 percent from customer companies in financial services and retail.
Earnings were also boosted by growth in its businesses in cloud computing and its HANA software that lets companies quickly analyze huge amounts of data.
SAP's main business is making and servicing software that helps companies manage administrative functions such as human resources, accounting and sales. It has added businesses in mobile and "cloud" computing, which means storing and processing information on an Internet-linked network of servers rather than on just one local computer.
The company confirmed its outlook for the year, predicting software and service revenue would grow 10-12 percent disregarding currency exchange rate fluctuations.
SAP shares rose 0.8 percent to €49.44.