July 21, 2015 / 5:10 AM / 4 years ago

SAP posts Q2 profit at low end of expectations, hit by cloud sales

FRANKFURT, July 21 (Reuters) - German business software maker SAP, reported mixed quarterly results on Tuesday as revenues topped expectations due to a surge in newer, lower-margin cloud software delivered via the Internet, pushing down profit to the very low end of hopes.

SAP said second-quarter operating profit, excluding special items, rose 13 percent to 1.39 billion euros ($1.50 billion), the bottom of analyst estimates ranging from 1.39 billion to 1.45 billion euros in a Reuters poll.

In constant terms, excluding the effect of translating other currencies into the euro, operating profit rose just 1 percent.

Europe’s largest software maker reported total revenue 4.97 billion euros ($5.38 billion), up 20 percent from 4.15 billion euros, or 8 percent excluding currency effects.

Cloud subscription and support revenue from continuing operations jumped 129 percent to 555 million euros from 242 million euros in the second period of last year. On the same basis, revenues from its mainstay software licence business rose 13 percent to 3.51 billion euros from 3.12 billion euros. Without currency effects, software licenses grew 3 percent.

SAP stuck to its outlook for the full 2015 year for non-IFRS operating profit of between 5.6 billion euros and 5.9 billion euros at constant currencies, which represents flat growth to a rise of as much as 5 percent from 5.6 billion euros last year. ($1 = 0.9245 euros) (Reporting by Harro ten Wolde and Eric Auchard; Editing by Kirsti Knolle)

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