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SAP reports 14% revenue increase, operating profitability softens

Brian McKenna

SAP made an operating profit of €4.06bn on €16.22bn revenue in 2012, a margin of 25%. This contrasts with an operating margin of 34.3% in 2011, a fall of 9.3 percentage points. 

The figures were revealed in the company’s preliminary financial results for the fourth quarter (Q4) and full year ended 31 December, 2012.

SAP’s software revenue for the European region was €937m, compared with €865m in 2011 – an increase of 8%.

SAP Co-CEOs Bill McDermott and Jim Hagemann Snabe hailed 2012 as a record-breaking year. 

“We achieved a breakthrough in the cloud and today SAP is the second-largest cloud player in the world," they said. "And we overachieved on our SAP HANA revenue ambition, making SAP the fastest-growing next generation database company in the market."

SAP’s in-memory database, HANA, approached €200m in software revenue in Q4, attaining almost €400m for the full year.

The company’s mobile business contributed more than €220m to software revenue, achieving its full year revenue target.

SAP said annual cloud revenue is approaching €850m, while 12-month new and up-sell subscription billings for SAP cloud applications increased by a factor of 19 over the year.

The company will report its full and audited fourth quarter and full year 2012 results on 23 January.


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