Image may be NSFW.
Clik here to view.
At the top line SAP’s Q1 was impressive with total non-IFRS revenues increasing by 21% to Eur3.0 billion. At constant currency, the increase was 18%. Take out the impact of the Sybase acquisition (contributing Eur205 million) and that’s 10% growth, so in line with the Group’s predictions of 10-14% ccy growth for 2011 (see SAP to maintain growth pace in 2011).
It’s hard to decipher the organic growth further down. At the top line, the US remained the best performing region with growth off 33% (ccy), Germany up 9% and rest of EMEA up 14%.
In total, non-IFRS software revenues were up 24% to Eur577 million (ccy) and software and software related services revenues grew 17% to Eu2.3 billion (ccy), while consulting revenues were up 16% and ‘other services’ revenues were up 49%. Interesting to note though that, while the total number of software deals closed grew by 34%, the value of software orders received showed a small decrease of 1%. So the average deal size looks to have fallen significantly.
Profitability, meanwhile, was hit by acquisition related charges. Non-IFRS operating profit (i.e. excluding certain adjustments) was up by 26% to Eur779 million (and by 21% at constant currency). However, IFRS operating profit, i.e. after taking account of acquisition charges, share based compensation expense, restructuring and discontinued activities, was up just 7% (operating expenses were up 24%) to Eur597 million.
