SAP sees 2013 software, service revenue up 11-13 percent
FRANKFURT (Reuters) - German business software group SAP (SAPG.DE) said revenue growth from software and software-related services would slow to 11-13 percent this year, from 17 percent in 2012, as customers spend less on technology amid economic uncertainty.
SAP said on Wednesday revenue from the segment grew 17 to 13.2 billion euros ($17.5 billion) last year. Software sales generate high-margin, long-term maintenance contracts and are an important gauge of a company's future profit.
The outlook chimed with investor worries that corporations would postpone spending on technology because of uncertainty over potential U.S. government spending cuts and the economic crisis in Europe.
SAP also said it expected operating profit this year to be 5.85-5.95 billion euros at constant currencies, up from 5.21 billion in 2012.
SAP's 2013 operating profit was forecast at 5.57 billion euros, according to Reuters data, with analysts' estimates ranging from 4.7-6.3 billion.
Last week, SAP announced worse-than-expected quarterly revenue and operating profit.
The company, which competes with IBM (IBM.N) and Oracle ORCL.O, said it still expected 2015 revenue to top 20 billion euros.
($1 = 0.7526 euro)
(Reporting by Harro ten Wolde; Editing by Dan Lalor)
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