1 Min Read
FRANKFURT, July 18 (Reuters) - Software AG hiked its full-year profit guidance as it reported second-quarter results that exceeded expectations thanks to demand for maintenance services at its digital business.
Germany's second-biggest business software maker after SAP said on Tuesday it expected its 2017 operating profit margin to come to between 31 and 32 percent, compared with previous guidance for 30.5 to 31.5 percent.
In the second quarter, its operating profit (EBITA) jumped 10 percent to 61.3 million euros ($70.4 million), beating consensus for 57.5 million in a Reuters poll of analysts.
Its margin widened to 29.5 percent from 27.4 percent in the year-earlier period, helped by a 9 percent rise in revenues from maintenance services for its digital business platform.
Software AG is betting on playing a key role in the so-called fourth industrial revolution as manufacturers seek to capitalise on vast amounts of data captured from ever smarter machines.
$1 = 0.8713 euros Reporting by Maria Sheahan; Editing by Andrew Hay