SAP revenue up 18 per cent

Software giant SAP reported an 18 per cent increase in revenue in the second quarter of 2008, up to €2.86bn (£2.26bn) from €2.42bn (£1.91bn) in the same period last year.

But net income dipped nine per cent to €408m (£323m) from €449m (£355m) in the second quarter of 2007, although the fall was in line with financial analyst estimates.

But the fact that revenue from support fees climbed 16 per cent to €1.1bn (£870m) from €944m (£746m) is likely to further incense UK users currently being forced into paying higher support and maintenance fees by the supplier.

Revenue from software licences was up 25 per cent to €898m (£710m) from €716m (£566m), beating analyst estimates. Consulting revenue rose 16 per cent to €628m (£496m), and training revenue increased 10 per cent to €114m (£90m).

SAP blamed the decline in the value of the US dollar for the drop in profit, but said the worst of the economic slump was now over.

Chief executive Henning Kagermann raised the company’s revenue and margin forecasts for the rest of the year, contributing to a 6.5 per cent jump in SAP’s share price.

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