Growth in software and software-related revenues is largely behind a 15 per cent increase in profit for SAP in the second quarter of 2010.
SAP’s preliminary financial results show its net profit has risen to 490 million euros, up from 426 million euros in the second quarter of 2009.
Software and software-related revenues were up 16 per cent, from 1.95 to 2.26 billion euros.
Software revenue alone increased by 17 per cent to earn the company 637 million euros, while total revenue was up 12 per cent to 2.89 billion euros.
Major contract wins for SAP in the second quarter of 2010 included Swiss Reinsurance Company Ltd, DSG Retail Ltd, American Water Works Service Co., the US Department of Agriculture, Delta Air Lines, Pelagio, Huaneng Lancang River Hydro Power, Sumitomo Chemical Co. Ltd, Malaysia Airports Holdings Berhad and Parkway Hospitals Singapore.
On the results, SAP CFO Werner Brandt said, “We are pleased to report another quarter of growth in software and software-related service revenue. The top line results were driven by continued growth in software revenue, strong support revenue, mainly from the majority of our customers who endorsed Enterprise Support, and double-digit growth in subscription revenue.”
Jim Hagemann Snabe, co-CEO, SAP, attributes SAP’s second quarter growth to its renewed focus on customer-driven innovation.
“Reaching more than 100,000 customers is a testament to the inroads we have made in expanding our volume business and our success in the small and midsized enterprise (SME) segment,” said Hagemann Snabe, adding that this success creates a strong foundation for the long-awaited volume deployment of on-demand platform SAP Business ByDesign, which was to be released in six countries from 31 July.
