Germany’s SAP, the world’s largest enterprise management software maker, expects the decision to completely stop operations in Russia and Belarus will have a negative impact on annual operating profit of about 350 million euros, excluding changes in exchange rates.

This is stated in the company’s report for the second quarter of 2022. In the reporting period, it reduced operating profit more than expected, but increased revenue by 13%.

Operating profit of SAP in April-June, 2022 was 1.68 billion euros against 1.92 billion euros for the same period last year. Analysts polled by FactSet had forecast a figure of 1.74 billion euros.

The company’s revenue increased to 7.52 billion euros from 6.67 billion euros a year earlier. Experts predicted the figure at the level of 7.43 billion euros.

Revenue from cloud services increased by 34% and reached 3.056 billion euros, while analysts had forecast a figure of 2.97 billion euros. Cash receipts from sale of software licenses and user support fell by 2%, to 3.403 billion euros.

In connection with the expected consequences of leaving Russia and Belarus, SAP has downgraded its operating profit forecast for the current year to 7.6-7.9 billion euros from 7.8-8.25 billion euros previously expected. However, the company confirmed its forecast for cloud services revenue of 11.55-11.85 billion euros, and cloud services and software license sales of 25-25.5 billion euros.

Since the beginning of 2022, SAP capitalization has decreased by 29.2%, to 106.02 billion euros.