SAP, the world's leading maker of business software, said today that its net profit in 2005 had increased by 14% on strong growth in North America.
Over the year, net profit rose to €1.50 billion, in line with analysts' forecasts, and pro-forma operating profit rose 16% to €2.33 billion, SAP said. '2005 was an excellent year for SAP,' chief executive Henning Kagermann said in a statement.
SAP highlighted strong growth in software licence revenues in the Americas region where sales grew by 24% to €3 billion. The German group made further gains in the US despite competition from US-based rival Oracle.
For 2006, the company forecast growth in licence sales of 15-17% and a further increase in net profit. Investors consider the licence sales figure as the key indicator of SAP's overall performance.
It shows the level of demand for SAP's products and also serves as an important indicator of future growth because additional software sales lead to increased maintenance revenue going forward. SAP employs 640 people in Dublin and Galway.
