German business software maker SAP has reported a decent rise in operating profit for the first quarter. The company said the result was helped by a weak euro. The firm expected flat growth for the full year.
Europe's largest software company, Walldorf-based SAP, said first-quarter operating profit rose by 15 percent to 1.06 billion euros ($1.13 billion), compared with the same quarter the year before.
The result was boosted by a weak euro, making German exports cheaper abroad. Without the currency effect, earnings dropped, as SAP continues to implement its new business model of selling Cloud-based products rather than offering software that is directly installed on clients' servers.
The transition is costly, and the new business model delivers less money up front, which is affecting profitability for now.
SAP also said costs from recent takeovers were affecting the bottom line.
SAP reiterated its full-year forecast for operating profit of between 5.6 billion euros and 5.9 billion euros at constant currency exchange rates.
ng /hg (Reuters, dpa)