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SAP shares jump after better-than-expected quarterly results

Business

Shares in SAP jumped 7per cent on Thursday to the top of Germany's blue-chip index after the software maker confirmed its outlook and said its quarterly business activity recovered from the effects of a global lockdown faster than expected.

FILE PHOTO: The company logo is seen at a showroom that hosts software company SAP in Davos, Switzerland Januar 22, 2020. REUTERS/Arnd Wiegmann/File Photo

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FRANKFURT: Shares in SAP jumped 7per cent on Thursday to the top of Germany's blue-chip index after the software maker confirmed its outlook and said its quarterly business activity recovered from the effects of a global lockdown faster than expected.

Total revenue in the period increased by 2per cent to 6.74 billion euros (US$7.64 billion). Software licenses, SAP's cash-cow business, slumped 18per cent, and cloud revenues were up by the same amount.

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"Software licenses revenue, while still below normal levels, recovered more than expected", SAP said in a pre-released earnings statement, adding that the revenue showed a strong sequential improvement compared to the first quarter.

Europe's most valuable technology company confirmed its 2020 outlook for an operating profit, adjusted for special items, in a range of 8.1 billion-8.7 billion euros, a fall of 1per cent-6per cent at constant currencies.

Analysts at Jefferies said SAP's unchanged 2023 guidance, which used to look realistic before the pandemic, implies a very strong rebound in new cloud bRead More – Source