FRANKFURT, July 20 (Reuters) - SAP, Europe’s most valuable technology firm, posted rapid growth in internet-delivered cloud services, dampening near-term operating profit, which was slightly below forecasts the company blamed on higher cloud research and marketing costs.
The German company reported revenue for the second quarter rose 10.4 percent to 5.78 billion euros ($6.65 billion) from a year ago, beating average analyst expectations of 5.71 billion euros, according to a Reuters poll.
SAP, the world’s biggest maker of business planning software used by multinationals, said core profits excluding special items, rose 3 percent in constant currencies to 1.57 billion from a year-ago.
That was below the average of 1.59 billion euros analyst polls by Reuters, with individual forecasts ranging from 1.461 billion to 1.663 billion.
Including special items under IFRS accounting standards, SAP operating profit fell 27 percent, weighed down by restructuring and stock option costs. ($1 = 0.8693 euros) (Reporting By Eric Auchard and Ilona Wissenbach in Frankfurt; Editing by Edward Taylor)