SAP headquarters in Walldorf, Germany. (picture alliance/Uwe Anspach/dpa)
A strong market for cloud computing helped German software company stay in the black for 2018, the company announced on Tuesday, reporting 4.1 billion euros (4.7 billion dollars) in net profit for the year.
That was a 1-per-cent rise against 2017, when it reported 4 billion euros in profit. The company noted that its tax bill was higher for 2018, which depressed profits.
Europe's largest software manufacturer noted strength in its cloud computing division, reporting 10 billion euros worth of new contracts for such services in the year, a 14-per-cent increase.
"This stellar business momentum sets us up perfectly for continued strong profitable growth in 2019 and beyond," said chief financial officer Luka Mucic.
The company has invested heavily in cloud computing - whereby customers access software on a remote computer, instead of storing it directly on their machine - leading to losses. The company noted profits in the division for 2018 for the first time since 2013, but only due to special effects.
Overall revenue went up by 5 per cent, to 24.7 billion euros.
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