Fatter deals boost SAP earnings

Fewer but bigger software deals and increased sales to financial and retail companies helped SAP AG post a 12 per cent increase in earnings in the second quarter of the year.

The maker of back-office business software said net profits rose to 661 million euros ($A785.55 million) from 588 million euros in the same period a year earlier.

Revenues jumped 18 per cent to 3.898 billion euros, with double-digit increases in all regions.

SAP said on Tuesday that it did slightly fewer software deals, but the ones it concluded were worth more. The average value of software orders increased 32 per cent.

It said software sales revenue rose more than 60 per cent from customer companies in financial services and retail.

Earnings were also boosted by growth in its businesses in cloud computing and its HANA software that lets companies quickly analyse huge amounts of data.

SAP's main business is making and servicing software that helps companies manage administrative functions such as human resources, accounting and sales. It has added businesses in mobile and "cloud" computing, which means storing and processing information on an internet-linked network of servers rather than on just one local computer.

The company confirmed its outlook for the year, predicting software and service revenue would grow 10 to 12 per cent disregarding currency exchange rate fluctuations.

SAP shares rose 0.8 per cent to 49.44 euros.

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