NEWCASTLE UPON TYNE (dpa-AFX) - Sage Group (SGE.L) reported a 6.5% growth in its third quarter, reflecting a resilient performance against the background of more challenging trading conditions due to COVID-19.
Q3 recurring revenue increased by 6.5% to £421 million from £395 million generated a year ago. Total group revenue for the quarter improved by 1.1% to £460 million from £455 million reported in the same period of last year.
Recurring revenue for the first nine months of the year rose by 9.0% to £1,247 million, underpinned by software subscription growth of 22.6% to £885 million from £722 million last year, as Sage continued to focus on migrating existing customers and attracting new customers to Sage Business Cloud.
Further, the company now expects recurring revenue growth for fiscal 2020 to be in the region of 7% - 8%, with the decline seen in the third quarter in other revenue expected to continue for the remainder of the year. Reflecting the overall performance of the business, organic operating margin is expected to be around 22% for the current financial year.
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