SAP: targets raised thanks to growth in the cloud

(CercleFinance.com) - On Wednesday Germany's SAP raised its earnings and sales targets for 2021, with the corporate software publisher saying that it is benefiting from acceleration in its cloud business.


It now expects to generate revenue from subscriptions to its software and cloud services of between 23.6 and 24 billion euros at constant exchange rates this year, against a previous revenue forecast range of 23.4 to 23.8 billion euros.

SAP also said it expects FY operating profit of 7.95 billion to 8.25 billion euros, slightly under the 8.28 billion euros in 2020.

By way of comparison, it was previously targeting a slightly lower operating profit range of 7.8 to 8.2 billion euros at constant exchange rates this year.

In Q2, the Walldorf-based group posted IFRS operating profit that is down 23% at 980 million euros, which represents a non-IFRS operating margin of 28.8%, above the consensus of 27.9%.


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