SAP grows ANZ business despite difficult, uncertain market

Peter Dinham
Thursday, 13 August 2009 10:47

IT Industry - Market

SAP has increased revenue in its Australian and New Zealand business for the first half of this year, with the company saying it has managed to sign major deals with new customers amidst some of the most volatile trading and market conditions it’s ever experienced.

In releasing its results for the second quarter to 30 June, and the results for the first half of 2009, SAP once again only gives us information on revenue performance - and only in percentages - with no actual dollars, which reveals nothing about how much revenue the Australian-New Zealand business actually brought in, let alone what the bottom-line for the business looks like. 

Nevertheless, even though SAP is under pressure locally from rivals like Oracle and local player Technology One, SAP Australia and New Zealand president & CEO, Tim Ebbeck, says that he’s pleased with the company’s performance in the first half in tough trading conditions, and says it has “signed major deals with new customers, strengthened and built on relationships with existing customers and taken to market a really compelling set of solutions with SAP BusinessObjects.

“In this environment, any incremental revenue growth is significant, given we had our largest year ever in 2008.  We are pleased but not complacent.  It’s still a challenging market but also one with significant opportunities.” 

Ebbeck reports that SAP increased overall revenue by 16 per cent in Q209, compared to the same period last year, and overall revenue was up by 14 per cent for the first half overall, when compared with the same period in 2008.

On the key revenue indicator of the business, software and software related services – or revenue excluding consulting, training and other services – SAP achieved 17% growth for the first half year-on-year and 10% growth for Q209 over Q208.

According to Ebbeck, key competitive wins include ERM Power, the largest privately owned energy company in Australia, and Mondial Assistance Australia - both via Extend Technologies - as well as Metcash, with other wins in the indirect business including Muir Electrical (trading as The Good Guys), sportswear manufacturer ASICS and pharmaceutical group, Ego Pharmaceuticals, and Optus extension of its SAP contract.

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