Europe’s largest software group is extremely optimistic
Europe’s largest software group is extremely optimistic. The profit has increased. The share buyback pleases investors and the IPO of a subsidiary should fill the cash register for new growth.
The software company SAP has underlined its optimism for further development almost three weeks after preliminary and surprisingly strong second-quarter figures. After a significant improvement in cash flow in the second quarter, the forecast for free cash flow, which was lowered three months ago, was raised again.
However, the final figures were masked by the announcement that the US software provider Qualtrics, which was acquired in 2018 for $ 8 billion; would be listed on a US stock exchange. SAP wants to remain the majority shareholder, but the largest single shareholder is said to be Qualtrics founder and boss Ryan Smith. A final decision; the conditions and the schedule for the IPO of the SAP area focused on customer and experience management are still pending.
CEO Christian Klein said he was satisfied with the resilience shown
Net profit in the second quarter; which has not yet been mentioned, increased by six percent to just under 1.4 billion euros in the same period of the previous year. It rose by seven percent per share to EUR 1.17; a slightly stronger percentage as SAP had bought back its own shares for around EUR 1.5 billion at the beginning of the year.
CEO Christian Klein said he was satisfied with the resilience shown and the continued growth power of the company. CFO Luka Mucic sees the broad portfolio and the geographical expansion as well as the quick reaction on the cost side due to the corona charges as important factors for the good development. The investments in the most important future fields had been maintained. Although there was a reluctance to hire new employees; the workforce has grown by around 1,000 since the beginning of the year.
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