SAP 1Q Net Profit Rose; Confirms Pre-Announced Figures

   By Mauro Orru 
 

SAP SE said Thursday that net profit for the first quarter rose on year, while it confirmed an increase in operating profit as pre-announced earlier this month.

Reporting on a non-IFRS basis, the German software company said first-quarter net profit rose to 1.65 billion euros ($1.99 billion) from EUR1.02 billion in the first quarter of 2020.

The company said earlier this month that operating profit rose to EUR1.74 billion from EUR1.48 billion, with operating margin climbing to 27.4% from 22.7%.

Total revenue fell to EUR6.35 billion from EUR6.52 billion as pre-announced, with cloud revenue rising to EUR2.15 billion from EUR2.01 billion and software-licenses revenue increasing to EUR483 million from EUR451 million.

SAP also reiterated the guidance for 2021 that it raised earlier in the month, projecting non-IFRS operating profit at constant currencies between EUR7.8 billion and EUR8.2 billion. Non-IFRS cloud revenue at constant currencies for the year should come in between EUR9.2 billion and EUR9.5 billion, while non-IFRS cloud and software revenue at constant currencies should be between EUR23.4 billion and EUR23.8 billion.

"The first quarter of 2021 was unique in many ways. We had the highest order entry growth across cloud and software in five years while posting the strongest increase in non-IFRS operating profit and margin in a decade," SAP's Chief Financial Officer Luka Mucic said.

Write to Mauro Orru at [e-mail]; @MauroOrru94

(END) Dow Jones Newswires

April 22, 2021 01:22 ET (05:22 GMT)

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