SAP Reports Quarterly Profit Rise in Clouds

SAP Reports Quarterly Profit Rise in Clouds

Profits were up 23% to 1.04 billion.

BERLIN --Business software giant SAP said on Monday that net profit rose in the third quarter as its cloud computing activities grew, enabling it to confirm its annual forecast.

Quarterly net profit rose to 762 million euros (US$1.04 billion), up 23% from a year earlier at SAP, a leader in supplying software systems for industrial sites and business management.

However, the rise in revenue was less robust, with a 2% increase to 4.05 billion euros, as the dollar and the yen devalued versus the euro, said the Walldorf, Germany-based company.

"SAP had a very strong performance in the third quarter, considering the mixed macroeconomic environment and the strong currency headwinds," said chief financial officer Werner Brandt.

SAP's revenue with subscriptions and support for cloud computing, Internet-based data storage and management tripled to 191 million euros.

The company continues to see full-year operating profit of 5.85 billion to 5.95 billion euros.

LBBW analysts praised SAP's guidance confirmation and earnings results.

"We regard SAP's success on the margin level as more important than the revenue miss which was predominantly caused by currencies," said LBBW. "We also regard the confirmed full-year forecast as positive."

Copyright Agence France-Presse, 2013

TAGS: Finance
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