SAP Confirms Outlook After Strong Q2
Fakhir Rizvi Published July 20, 2016 | 01:59 PM
FRANKFURT,(APP - UrduPoint / Pakistan Point News - 20th july,2016) - German software giant SAP on Wednesday confirmed its full-year targets after strong growth in its cloud business propelled earnings and sales in the second quarter.
SAP said in a statement that net profit soared by 73 percent to 813 million Euros ($896 million) in the period from April to June. The increase was partly attributable to the fact that the year-earlier figure had included restructuring costs.
But the increase also reflected a strong operating performance with strong demand for its cloud products pushing up overall revenues by 5.
4 percent to 5.237 billion euros. Cloud computing is a different way of delivering applications and services to companies and consumers.
Programmes are hosted in the internet "cloud" rather on a client's server or computer and delivered via broadband connections, thus opening up many possibilities to tailor services to just what is needed and reducing the need for businesses to buy and maintain equipment. SAP said revenues in its cloud business grew by 30 percent to 720 million euros.
"Our momentum couldn't be stronger," chief executive Bill McDermott boasted in a telephone news conference.