SAP’s profit undershoots expectations, as costs rise
Europe’s most valuable technology firm posted rapid growth in its cloud services business in both revenue as well as expenses
Frankfurt — SAP, the global software firm whose name has come up in SA’s ongoing Gutpa e-mail leaks, has posted quarterly profit that undershot expectations. Europe’s most valuable technology firm posted rapid growth in its cloud services business in both revenue as well as expenses, putting a damper on its quarterly operating profit. The German company reported revenue for the second quarter rose 10.4% to €5.78bn from a year ago, beating average analyst expectations in a Reuters poll of €5.71bn. SAP, the world’s biggest maker of business planning software used by multinational groups, said core profits excluding special items was €1.57bn, up 3% in constant currencies from a year ago. That was below the average forecast of €1.59bn of 14 analysts polled by Reuters, with individual forecasts ranging from €1.46bn to €1.66bn. Research and development costs rose 19%, while sales and marketing expenses rose 16% compared with a year ago, when these increasing costs to drive future new clou...
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