German software giant SAP reports more profit in Q2

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BERLIN, July 27 (Xinhua) — Revenues of the German software giant SAP increased by 2 percent year-on-year in the second quarter (Q2) to 6.74 billion euros (7.9 billion U.S. dollars), the Walldorf-based company announced on Monday.

SAP’s Q2 profit after tax jumped by over 50 percent to 885 million euros, “primarily due to a significantly lower impact from restructuring expenses” compared with the previous year, the company said in a statement.

“More than ever, the pandemic has proven that digitalization is no longer an option but a must-have to withstand challenging times and to achieve desired business outcomes,” said SAP CEO Christian Klein.

Operating cash flow “grew strongly” in Q2 which was mainly driven by “positive effects from lower payments to suppliers and lower than expected income tax payments.” Operating cash flow for the first six months soared 41 percent to 3.77 billion euros year-on-year, according to the company.

SAP said its cloud business was “impacted by lower pay-as-you-go transactional revenue as a result of the COVID-19 crisis” and cloud revenues grew 21 percent year-on-year to 2.04 billion euros in Q2.

At the same time, revenues from software licenses decreased 18 percent to 0.77 billion euros, a “strong sequential improvement compared with the first quarter,” SAP noted.

On Sunday, SAP announced its intention to list Qualtrics, a U.S. company that offers solutions for online market research, on the New York Stock Exchange. SAP had acquired Qualtrics at the beginning of last year for 8 billion U.S. dollars. (1 euro = 1.17 U.S. dollars) Enditem

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