SAP's profit declines 2% to €974M year over year

Thursday, 18. October 2018 07:21

Growth of cloud subscription revenue of 39% on an annual scale to €1.3 billion underpinned SAP SE's results for the third quarter, prompting it to improve guidance for this year. The report published on Thursday showed basic earnings per share were 1% lower, but the figure was rounded at an unchanged €0.82, on a drop in aftertax profit of 2% to €974 million. It compares to market consensus of €1.03 billion. The German enterprise software maker posted turnover growth of 8% to €6.02 billion, matching expectations.

The company from Walldorf, Baden-Wuerttemberg, said cloud is "eclipsing software" at a surprising pace, with revenue 40% larger. "Our growth drivers are firing on all cylinders, especially SAP C/4HANA and SAP S/4HANA as foundations of the intelligent enterprise, said chief executive Bill McDermott.

Adjusted profit grew 6% to €1.36 billion, translating to €1.14 per share or 13% more than in the comparable period of last year. Operating profit dropped 6% in absolute terms, to €1.24 billion, while excluding special items it jumped 6% to €1.64 billion, which is 11% more in constant currency than in the three months through September 2017.

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