The DAX-listed software company SAP has released preliminary figures for the second quarter. “After the corona crisis had a significant impact on the global economy in the last month of the first quarter, business activity gradually picked up again in the course of the second quarter,” said the company from Walldorf. Software license revenue is still below normal, but the recovery has been stronger than expected, which is particularly true for the Asia-Pacific-Japan region, reports SAP. The pandemic has left its mark on the cloud division in lower volume-dependent transaction sales.
On an IFRS basis, SAP reports a 2 percent increase in sales to 6.74 billion euros. In the cloud division, sales increased by 21 percent to 2.04 billion euros. The software group’s software license revenue is down 18 percent to EUR 0.77 billion. SAP’s operating profit rose 55 percent to € 1.28 billion in the second quarter of 2020. “The operating margin increased in the second quarter by 6.5 percentage points compared to the previous year to 19.0 percent (IFRS) or by 1.8 percentage points compared to the previous year to 29.1 percent (non-IFRS) and by 1 6 percentage points to 28.9 percent (non-IFRS, currency-adjusted), ”says the company.
The South Germans confirm the outlook for the current year after it was lowered in April due to the effects of the corona pandemic. Sales in the cloud division are only expected to be between 8.3 billion euros and 8.7 billion euros after previously 8.7 billion euros to 9.1 billion euros. Across the Group, the company anticipates sales of between EUR 27.8 billion and EUR 28.5 billion for the current year. The previous forecast before the revision in April was between EUR 29.2 billion and EUR 29.7 billion. The operating result is expected to reach between 8.1 billion euros and 8.7 billion euros.
On the stock exchange, investors are reacting positively to SAP’s figures, the DAX-listed share is around 7 percent up at EUR 137.54.
At a glance – chart and news: SAP