SAP Q3 Profit Down; Backs Outlook For FY22, Mid-term - Quick Facts

(RTTNews) - German software major SAP AG (SAP) reported Tuesday that its third-quarter profit after tax declined 61 percent to 547 million euros from last year's 1.42 billion euros. Earnings per share were 0.57 euro, down 52 percent from 1.19 euro a year ago.

Adjusted profit after tax was 1.26 billion euros or 1.12 euros per share, compared to last year's 2.13 billion euros or 1.74 euros per share.

Total revenue, however, grew 15 percent to 7.84 billion euros from prior year's 6.85 billion euros mainly on 38 percent rise in cloud revenues. Rvenues increased 5 percent at constant currency rates.

Looking ahead, for the fiscal 2022, SAP continues to expect its non-IFRS operating profit at constant currencies to be in the range of 7.6 billion euros -7.9 billion euros, down 4% to 8% at constant currencies.

Regarding the impact of War in Ukraine, the company said that for the full year, it expects a total revenue impact of approximately 250 million euros at constant currencies from lack of new business and discontinuation of existing business. For non-IFRS operating profit, an impact of approximately 300 million euros at constant currencies are expected.

The Group has also reiterated its mid-term target to achieve double-digit operating profit growth in 2023. SAP expects to update its mid-term ambition in the upcoming quarters.

Luka Mucic, CFO, said, "We have delivered a strong cloud quarter with accelerating momentum across all key cloud indicators. We're at an important inflection point in our transformation which we anticipate will lead to accelerating revenue growth and double-digit operating profit growth in 2023."

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