The value of the day in Europe – SAP: the departure from Russia will impact its 2022 profit by 350 million

SAP shares fell 2.53% to 97.04 euros on the Frankfurt Stock Exchange after indicating during the publication of its first quarter accounts that its exit from Russia would cut its revenues by 300 million euros and its profits. adjustments of 350 million euros. The company also plans to incur restructuring expenses of approximately 80 to 100 million euros. The professional software publisher also revealed weaker-than-expected operational performance, penalized by the steeper-than-expected decline in license sales.

SAP posted adjusted operating income down 4% to 1.68 billion euros, below the consensus of 1.74 billion. Excluding the impact of exchange rates, it fell by 7%.

Adjusted revenues increased by 11% to 7.08 billion euros compared to an expected 6.88 billion euros. They rose by 7% excluding the impact of exchange rates.

In the cloud, its activity grew by 31% (+25% at constant exchange rates) to 2.82 billion euros. It again accelerated compared to the fourth quarter when it had increased by 24%.

The cloud backlog is up 28% (+23% constant exchange rates) 9.73 billion euros.

Revenues from software licenses for their part fell by 34% to 317 million euros. They are down 36% at constant exchange rates. The drop, caused by customers switching to the cloud, is lower than anticipated. Analysts were targeting $368 million.

This publication is accompanied by the confirmation of the 2022 objectives. This year, Oracle’s competitor is targeting adjusted operating income between 7.8 and 8.25 billion euros, stable at best and down 5% at worst. constant exchange rates.

Cloud revenue is expected in the range of 11.55 11.85 billion euros, up 23% 26% constant exchange rates. It had increased by 19% in 2021.