Thought Leadership
Thanks to a decent second quarter, Europe’s largest software manufacturer SAP is sticking to its outlook for the year as a whole despite the capricious customs situation in the global economy.
In the past three months, earnings before interest and taxes (EBIT) adjusted for special effects climbed by 32 percent to 2.57 billion euros, as the Walldorf-based DAX-listed company announced on Tuesday evening after the US stock exchange closed.
The high increase was primarily due to the major job restructuring program initiated last year, but also to lower costs for share-based employee remuneration. Operating profit therefore grew more strongly than previously estimated by analysts.
The North Baden-based company’s business with subscription software via the cloud, which CEO Christian Klein has targeted for growth, remains the driving force. Sales in this area increased by 24 percent, and the number of contracts for the next twelve months also grew significantly, providing more planning security. Overall, the Group achieved an increase in turnover of 9 percent to 9.03 billion euros. At the bottom line, net profit almost doubled to 1.75 billion euros.
dpa
