SAP profit up nine percent, software licenses hit £870 million in Q2
German software maker SAP saw strong growth in its software licenses during its second quarter, helping profit rise by 9 percent to €1.52 billion (£1.25bn).
Llcence revenue rose by 10 percent to €1.04 billion (£870m), higher than analysts were expecting.
The company added 500 new customers to its S/4 HANA cloud platform, with cloud subscription revenue growing 30 percent overall year over year to hit €720 million (£602m). Total revenue jumped 5 percent to reach €5.2 billion (£4.3bn).
Read More: Sport is ‘more than just marketing’ for SAP
SAP CEO Bill McDermott said that his company delivered a “unique trifecta” of double digit growth in software, cloud and operating income.
“Our S/4HANA pipeline has never been stronger,” he said.
The company’s chief financial offier Luka Mucic said: “We did what we said we would do – we delivered a strong Q2. I am proud how SAP is navigating ahead with extraordinary success across all business dimensions.
“Driven by our customer led innovation and our successful business transformation we outperformed the competition in top and bottom line growth.”
Brexit had no impact on SAP, the company claimed. While the effects of the referendum may be hard to judge in the short-term for customers paying for longer contracts, SAP said that strong performance in EMEA helped successfully navigate post UK referendum uncertainty.
SAP reported double-digit software licenses revenue growth in France, the Netherlands, Switzerland and across Southern Europe.
Russia and Germany had very strong double-digit growth in cloud subscriptions and support revenue. In the Americas region, the Company grew cloud and software revenue by 8 percent and cloud subscriptions and support revenue by 26 percent.
North America delivered a solid second quarter and is back on track with its half year performance, said SAP.