logo-loader
TechHardware & electrical equipment
viewThe Sage Group plc

Sage Group's organic revenue growth picks-up

Sage was late in switching to a software-as-a-service model but the idea seems to be taking hold now

Sage Group display
Software subscription revenue increased by 25.0% in the first nine months of the fiscal year

Organic revenue growth picked up in the fiscal third quarter at The Sage Group PLC (LON:SGE), the accountancy software giant.

The group’s like-for-like year-on-year revenue increased 6.8% in the third quarter, raising the growth rate for the first nine months of the trading year (which runs to the end of September) to 6.6%.

READ: Sage Group's first half profits fall as organic revenue growth misses expectations

The pick-up was welcomed by the City after the firm had disappointed in the second quarter with an organic growth rate of 8.3%. The shares were up 1.9% at 637.2p in mid-morning trading.

Software and software-related services (SSRS) revenue increased by 7.7% in the three months to the end of June from the same period of 2017, reflecting continued strong performance in training and services, offset by a decline in licence revenue as the business makes the transition to a subscription-based model.

"We have delivered acceleration in both organic and recurring revenue growth, demonstrating the impact of our primary focus on driving high-quality recurring revenue growth through Sage Business Cloud,” said Steve Hare, the chief financial officer of Sage.

The Sage Business Cloud’s annualised recurring revenue rose to £386mln, up from £336mln at the start of the quarter and up 56% year on year.

“We remain confident of achieving full year FY18 guidance of around 7% organic revenue growth and around 27.5% organic operating margin," Hare added.

Quick facts: The Sage Group plc

Price: 693 GBX

LSE:SGE
Market: LSE
Market Cap: £7.55 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Primary Health Properties delivering 'impressive dividend track record and...

Proactive Research analyst Ed Stacey says Primary Health Properties (LON:PHP) has an impressive track record of dividend growth, increasing the payment every year since listing in 1997. On top of that he says they've delivered steady capital gains on its portfolio that have translated into...

6 hours, 16 minutes ago

2 min read