SAP surprises analysts with earnings boost

21st October 2004, Comments 0 comments

21 October 2004 , WALLDORF - German software concern SAP said Thursday it expects to post 10 percent licensing revenues growth for 2004 after a stronger-than-expected sales and profits performance in the third quarter. Europe's largest software company reported that its profit in the third quarter gained by 15 percent year-on-year to EUR 291 million. The earnings came on revenues of EUR 1.776 billion, an 8 percent rise from the third quarter of last year which also surpassed the company's earlier projectio

21 October 2004

WALLDORF - German software concern SAP said Thursday it expects to post 10 percent licensing revenues growth for 2004 after a stronger-than-expected sales and profits performance in the third quarter.

Europe's largest software company reported that its profit in the third quarter gained by 15 percent year-on-year to EUR 291 million.

The earnings came on revenues of EUR 1.776 billion, an 8 percent rise from the third quarter of last year which also surpassed the company's earlier projection of EUR 1.755 billion.

The company said licensing income accounted for EUR 491 million of the revenues, up 13 percent year-on-year.

With the strong third-quarter showing, the company said it is now targeting 10 percent growth in its key licensing operations, which in 2003 came to EUR 2.15 billion.

SAP also said it expected to improve its operating profit margin by a further percentage point, after reaching 27 percent in 2003.

In 2003 SAP turned record profits of EUR 1.1 billion on revenues of EUR 7.03 billion.

SAP said that the Europe/Mideast/Africa and the Asia/Pacific regions showed the strongest software sales growth in the third quarter, rising 24 and 23 percent, respectively.

Sales to America slipped two per cent, reflecting adverse currency exchange factors. Adjusting for currency effects, America region revenues would have been six per cent higher, SAP said.

For the first nine months, SAP's group turnover came to EUR 5.11 billion, up 6 percent on the same period of 2003. Software sales accounted for EUR 1.38 billion, up 12 percent.

Pre-tax earnings rose 13 percent to EUR 1.22 billion, while the group profit, at EUR 769 million, was up 17 percent on the first nine months of last year, SAP said.

DPA

Subject: German news
 

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