SAP Sap SE

By Patrick Costello

SAP SE (SAP.XE) on Thursday said its second-quarter operating profit rose on year on the back of strong growth in its cloud business, and reiterated its outlook.

The German software company said it booked a second-quarter operating profit of 1.82 billion euros ($2.06 billion) on a non-IFRS basis, up 8% on a constant-currency basis from EUR1.64 billion a year ago.

Analysts expected SAP to generate a non-IFRS operating profit of EUR1.87 billion for the quarter, according to consensus estimates from Vara Research.

On an IFRS basis, operating profit fell 21% to EUR827 million. The company said its IFRS operating profit was hit by higher acquisition costs and voluntary redundancy costs associated with its restructuring program

Net profit amounted to EUR1.30 billion on a non-IFRS basis and EUR569 million on an IFRS basis, it said.

Revenue for the quarter rose 8% on a non-IFRS, constant-currency basis to EUR6.66 billion, up from EUR6.01 billion a year ago, it said. Revenue was EUR6.63 billion on an IFRS basis.

SAP said its non-IFRS operating margin was stable on year at 27.3%, falling short of a forecast by analysts of 27.7%, according to Vara Research.

SAP said revenue at its cloud services business grew 35% on a non-IFRS, constant-currency basis to EUR1.72 billion. New cloud bookings were up 17%, it said.

The company backed its 2019 and 2020 outlook. It said it continues to expect a non-IFRS operating profit between EUR7.85 billion and EUR8.05 billion in 2019 and of between EUR8.8 billion and EUR9.1 billion in 2020.

Write to Patrick Costello at patrick.costello@dowjones.com.

(END) Dow Jones Newswires

July 18, 2019 01:27 ET (05:27 GMT)

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