SAP Sap SE

   By Mauro Orru 
 

SAP SE said Monday that its operating profit and revenue for the second quarter increased as business activity improved despite the coronavirus pandemic, with software licenses revenue recovering more than expected although still below normal levels.

Reporting on a non-IFRS basis, the German software company said operating profit for the quarter rose to 1.96 billion euros ($2.28 billion) from EUR1.82 billion, with an operating margin of 29.1% compared with 27.3%.

Second-quarter net profit increased to EUR1.38 billion compared with EUR1.30 billion for the second quarter of 2019.

Revenue climbed to EUR6.74 billion from EUR6.66 billion, with cloud revenue rising to EUR2.04 billion from EUR1.72 billion but software licenses revenue slipping to EUR773 million from EUR948 million.

"Our broad solution portfolio, unmatched industry and geographic diversification coupled with our strong base of more predictable revenue have allowed us to manage the Covid-19 crisis this quarter," Chief Financial Officer Luka Mucic said.

SAP reiterated its outlook for 2020, expecting operating profit to be in a range of EUR8.1 billion to EUR8.7 billion at constant currencies, and total revenue in a range of EUR27.8 billion to EUR28.5 billion at constant currencies.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

July 27, 2020 01:24 ET (05:24 GMT)

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