After a decline in earnings last year, Software AG wants to grow again in its operating business. The adjusted operating margin (EBITA) should improve to 20 to 22 percent, as the company announced on Thursday in Darmstadt. In the previous year it had fallen to 19.6 percent.
Product sales are seen to be seven to eleven percent higher and should therefore grow faster than 2021 with two percent. Software AG is assuming that incoming orders in its digital division will continue to rise by 15 to 25 percent. The database business is expected to recover after a significant decline in the past year, and incoming orders are expected to range from stable to five percent plus.
In the final quarter, sales, earnings and the operating margin fell again. New business in the database division fell by almost 40 percent, and product sales also fell sharply by 22 percent. In contrast, the digital business saw double-digit growth in bookings and six percent in product sales. The bottom line for Software AG was a profit of 34.8 million euros, 30 percent less than in the previous year.
In December of last year, US financial investor Silver Lake acquired a stake in Software AG and subscribed to the company’s convertible bonds for around EUR 344 million. The investment is part of a strategic partnership designed to accelerate the company’s growth. Silver Lake got the chairmanship for this.
(bme)