By William Boston 

BERLIN -- SAP SE, the business-software maker, on Sunday said profit and sales declined in the three months through Sept. 30, as the economic fallout of the global response to the coronavirus pandemic hit core business units.

The Walldorf, Germany-based software maker said total revenue fell 4% to EUR6.54 billion, equivalent to $7.76 billion, in the third quarter, and operating profit slipped 1% to EUR2.07 billion. Cloud revenue rose 10% to EUR1.98 billion, and revenue from software and cloud services combined fell 2% to EUR5.5 billion.

As the pandemic continues to weigh on the economy and the threat of new lockdowns arises during a resurgence of Covid-19 infections, business customers are becoming more cautious about spending and investment, affecting core business units, SAP said.

"Lockdowns have been reintroduced in some regions, recovery is uneven and companies are facing more business uncertainty," SAP said. "Consequently, there is greater scrutiny of larger projects. Transactional revenue continues to be impacted, especially in SAP Concur where business travel-related revenues have yet to see a meaningful recovery."

As a result of the weaker business in the third quarter and uncertainty from the pandemic, SAP cut its outlook on earnings and revenue for the full year.

SAP said it now expects adjusted operating profit of up to EUR8.5 billion, down from a previous estimate of up to EUR8.7 billion. The company cut its revenue forecast to up to EUR27.8 billion, down from a previous forecast of up to EUR28.5 billion.

Write to William Boston at william.boston@wsj.com

 

(END) Dow Jones Newswires

October 25, 2020 17:33 ET (21:33 GMT)

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