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SAP Q3 Profit Climbs, Updates Full Year View
[October 20, 2014]

SAP Q3 Profit Climbs, Updates Full Year View


(dpa-AFX International Compact Via Acquire Media NewsEdge) WALLDORF (dpa-AFX) - German business software maker SAP SE (SAP) Monday said third-quarter profit attributable to owners of parent rose to 880 million euros from 762 million euros in the previous year. Earnings per share advanced to 0.73 euro from 0.64 euro. The results are on the basis of IFRS.



Total revenue grew 5 percent to 4.254 billion euros from 4.045 billion euros reported last year.

According to SAP, non-IFRS cloud subscriptions and support revenue increased 41 percent, and non-IFRS software and software-related service revenue grew 7 percent.


Further, the company updated its outlook for full year 2014.

Based on the strong momentum in SAP's cloud business, the company is raising its cloud outlook again and now expects full year 2014 non-IFRS cloud subscriptions and support revenue to be in a range of 1.040 - 1.070 billion euros from the previous range of 1.000 - 1.050 billion euros, at constant currencies, compared to 757 million euros reported in 2013. The upper end of this range represents a growth rate of 41 percent.

The company continues to expect full year 2014 non-IFRS software and software-related service revenue to increase by 6 - 8 percent at constant currencies from 14.03 billion euros in 2013).

With the customer-driven mix shift from upfront to cloud subscription revenue, SAP now expects full-year 2014 non-IFRS operating profit to be in a range of 5.6 billion - 5.8 billion euros at constant currencies, while the previous projection was for 5.8 billion euros to 6.0 billion euros. This totaled 5.48 billion euros in 2013.

SAP expects the fast-growing cloud business along with growth in support revenue will drive a higher proportion of more predictable revenue in the future.

The 2014 business outlook does not include any contributions from the planned addition of Concur Technologies, Inc.

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