SAP raises 2017 goals after 'tremendous' year in 2015
German software giant SAP said Friday it is raising its profit targets for 2017 after a "tremendous" year in 2015.
"SAP had exceptional momentum in the fourth quarter with fast growth in cloud and double-digit growth in its core license business," said SAP chief executive Bill McDermott.
"Our tremendous 2015 results... put us on a strong path for the future reflected in an increase of our 2017 ambition."
As already reported last week, SAP said that revenues were up 18 percent at 20.8 billion euros ($22.5 billion) last year.
Using international IFRS accounting rules, underlying or operating profit fell by two percent to 4.251 billion euros and net profit was down seven percent at 3.061 billion euros.
But SAP bases its forecasts on German or non-IFRS accounting rules. And here net profit was up eight percent last year, the company said.
Looking ahead to 2016, SAP said that "based on the continued strong momentum in our cloud business, we expect... full-year non-IFRS operating profit to be in a range of 6.4-6.7 billion euros," compared with 6.35 billion euros in 2015.
And SAP said it was raising its target for 2017 "to reflect both the current exchange rate environment and excellent business momentum."
Assuming a stable exchange rate environment, revenues were expected to be in a range of 23.0-23.5 billion euros and non-IFRS operating profit would amount to 6.7-7.0 billion euros, SAP said.
© 2016 AFP