German software giant SAP revenues down one pct in 2020
Source: Xinhua | 2021-01-30
Revenues of the German software giant SAP decreased by one percent year-on-year to 27.34 billion euros (around 33.2 billion U.S. dollars) in the past fiscal year, the company said Friday.
Cloud revenues grew strongly by 17 percent year-on-year, while revenues of software licenses were down 20 percent last year, according to the Walldorf-based company.
Profit after tax climbed to almost 5.3 billion euros in 2020, up from 3.4 billion euros in the previous year. SAP's business performance "sequentially improved in the fourth quarter even as the COVID-19 crisis persisted and lockdowns were reintroduced in many regions."
SAP had a "solid year in all regions." In the Europe, the Middle East and Africa (EMEA) region, cloud revenues increased 23 percent, with Germany, Switzerland and France "being the highlights."
In the Asia-Pacific region, cloud revenues increased 18 percent as Japan, South Korea, and Singapore performing particularly well. In the Americas region, cloud revenues also increased in double-digit numbers as the United States and Mexico recorded a "robust performance."
Qualtrics, an American subsidiary of SAP, had a "successful" initial public offering on Thursday. At IPO, the company was valued at almost 18 billion dollars, more than double the original acquisition price. Qualtrics shares "moved even higher" on the first day of trading, ending the day with a gain of just over 50 percent, according to the German company.
For 2021, SAP is expecting to increase cloud revenues by 13 to 18 percent. The outlook assumed that the COVID-19 crisis would slowly subside as vaccination programs ramp up globally, "leading to a gradually improving demand environment in the second half of 2021."
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