NEWCASTLE UPON TYNE (dpa-AFX) - Technology company Sage Group Plc (SGE.L) reported Thursday that its third-quarter Group organic total revenue increased 5.3 percent from last year to 476 million pounds.
In its trading update, the company said recurring revenue increased 11.4 percent to 405 million pounds in the quarter.
In the first nine months of the year, Group organic total revenue increased 5.9 percent to 1.42 billion pounds. Recurring revenue grew 10.6 percent to 1.18 billion pounds.
The higher results reflected growth in software subscription, driven by the continued focus on attracting new customers and migrating existing customers to subscription and the cloud.
Software and software related services or SSRS revenue declined 15.5 percent from last year to 195 million pounds for the first nine months.
Regionally, North America delivered revenue growth of 10 percent to 471 million pounds. UKI revenue growth was 7.2 percent to 300 million pounds.
Looking ahead, Jonathan Howell, Chief Financial Officer, said, 'We expect full year FY19 recurring revenue growth to slightly exceed guidance of 8-9 percent and the combined decline in SSRS and processing revenue to be slightly greater than the decline seen in the first nine months of the year. We expect organic operating profit margin to be at the lower end of the guided range of 23-25 percent.'
Further, the company said it sees a non-cash non-recurring charge in the region of 60 million pounds relating to the accelerated depreciation of the North Park building following the move of Sage's flagship UK office to Cobalt Business Park.
Approximately 20 percent of this charge will be recognised in fiscal 2019, and the remainder in fiscal 2020.
Copyright RTT News/dpa-AFX