By Elizabeth Kelleher
SAP’s third quarter results show a 12 per cent rise in net profit off the back of a 20 per cent increase in software and software-related revenues.
SAP’s preliminary financial results show that its third quarter software and software-related revenues increased to 2.32 billion, up from 1.94 billion euros in the third quarter of 2009.
Software revenues amounted to 1.76 billion euros, up from 7.48 billion, while total revenue increased by 13 per cent to 8.41 billion to leave the company with a net profit of 501 million.
Major contract wins for the third quarter of 2010 included Jiangsu Electric Power Corp., China Central Television, Chemical Company of Malaysia Berhad, Punjab State Power Corporation Ltd., Applied Industrial Technologies, Fossil, American Express, Eskom Holdings Limited, TNK-BP, Nedbank Group Limited, Standard Bank of South Africa Limited, Mercuria Energy Group Holding, Iberdrola and the City of Johannesburg.
Werner Brandt, CFO, SAP AG, said that all of the regions reported growth in the third quarter, particularly the emerging markets of Asia, Europe and Latin America. “We saw a good mix of revenues among small, midsized and large enterprises, and we had an increase in deal volume,” said Brandt.
Looking ahead, SAP expects its full-year non-IFRS software and software-related service revenue to increase in a range of 9 to 11 per cent at constant currencies.
Bill McDermott, co-CEO, SAP, said the acquisition of Sybase means that SAP is now offering customers the most “complete and heterogeneous mobile platform in the industry”.
“As customers continue to reengage, seeking opportunities to grow their businesses and differentiate themselves from their competitors, we are able to help them be best run businesses with our unique strategy to deliver a full suite of enterprise software and next generation business intelligence on any device at any time,” said McDermott.
