Consulting and training revenues grow slightly
SAP concentrated on growing product revenue in 2004.
As a result, consulting revenue only grew 1% (4 % at constant
currencies) to €1,971 million in 2004.
The Company turned training revenue around after
it had declined in the two previous years. In 2004, training
revenue was €302 million, an increase of 1% (4 % at constant
currencies). One of the reasons for the upturn was that
demand for training grew in 2004 in the wake of accelerating
software sales.
Driven chiefly by the strong advance of software
revenue, total revenue rose 7% to €7,514 million. Excluding
currency effects, the increase was appreciably higher
at 10 %.
Revenue grows in all regions
SAP succeeded in increasing its total revenue in all regions. In
2003, the Company’s revenue growth in Germany, the home
market, was subdued, but in 2004 German revenue grew a
remarkable 7 %. Germany’s contribution of €1,780 million
represented almost one-fourth of the Group’s revenue. The
Company’s revenue from the rest of the Europe, Middle East,
and Africa (EMEA) region increased 6% to €2,443 million.
The upturn in revenue was most noticeable in the second half
of the year, both in Germany and the rest of the EMEA region.
At the beginning of 2004, SAP forecast better-than-average
revenue growth in the United States and the Asia-Pacific
region, and these expectations were fulfilled. The Company
achieved 9% growth (19% at constant currencies) in the
United States and 21 % growth (25 % at constant currencies) in
Asia-Pacific (except Japan). U.S. sales valued at €1,894 million
represented 25 % of SAP’s total revenue and reinforced the
Company’s position in this, the key market for business
software.
In Asia-Pacific, SAP’s revenue growth was especially
strong in the emerging markets of China and India. On the
other hand, the operating environment in Japan remained
problematic and affected revenue, which declined 12 %
to €387 million. Excluding the negative impact of currency
effects, revenue declined 10 % in Japan. SAP’s revenue in
the entire Asia-Pacific region was €867 million, an increase of
3% on the previous year’s result.
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