SAP Pre-Announces Strong Second Quarter and European shares rise

European stocks edge higher after SAP cites stronger-than-expected recovery

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SAP SAP, 7.78% SAP, +2.00% was the standout performer, rising 7% as the German business software giant released its second-quarter results early, saying its adjusted operating profit rose 8%, as the Asia Pacific and Japan region had a strong recovery in software license revenue.

That helped the German DAX DAX, 1.29% to outperform the other regional indexes in Europe, including the French CAC 40 PX1, 0.21% and U.K. FTSE 100 UKX, -0.27% .

Helping the German index outperform Thursday were strong gains from SAP, up 7.5% at a new all-time high, with the business software giant posting a rise of 8% in its second quarter operating profit.

SAP reported Significant Increase in Operating Profit and Operating Margin:

  • IFRS Cloud Revenue Up 21%; Non-IFRS Cloud Revenue Up 19%
  • Current Cloud Backlog Up 20%
  • Software Licenses Revenue Down 18%, A Strong Sequential Improvement Compared To The First Quarter
  • IFRS Cloud & Software Revenue Up 4%; Non-IFRS Cloud & Software Revenue Up 3%
  • IFRS Operating Profit Up 55%; Non-IFRS Operating Profit Up 8%
  • IFRS Operating Margin Up 6.5pp; Non-IFRS Operating Margin Up 1.8pp
  • Reiterates 2020 Outlook

“I am extremely proud that our teams successfully navigated the very challenging environment to deliver a better than anticipated quarter. It’s clear, customers are turning to SAP’s Intelligent Enterprise to drive resilience, profitability and sustainability. Our portfolio is key to drive the kind of business transformation our customers want as our applications run the world’s most mission critical business processes. As a result, our customers can emerge even stronger from the crisis. In line with our strategy we continue to invest in our growth drivers such as Industry Cloud.”

Christian Klein, CEO

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