German business software maker SAP reported a 15 percent rise in operating profit helped by a cheap euro, even as rising investment in newer cloud-based software squeezed its profit margin.
Europe's largest software company said on Tuesday first-quarter operating profit, excluding special items, rose to 1.06 billion euros ($1.13 billion), matching the average expectation in a Reuters poll.
First-quarter revenue rose 22 percent to 4.5 billion euros, helped by currency effects, solid business in European markets and the $7.3 billion acquisition of Concur, the expenses software maker.
That beat the average analyst expectation of 4.25 billion euros in the Reuters poll.
SAP shares are indicated to open 1.1 percent higher, outperforming the German blue chip index, which is seen opening 0.6 percent higher, according to premarket data from brokerage Lang & Schwarz.
"Top-line really strong, but bottom-line disappointing," a Frankfurt-based trader said.