26th Jan 2017 07:57
LONDON (Alliance News) - FTSE 100-listed payroll and payments software company Sage Group PLC on Thursday reiterated its outlook for its full year, as it said organic revenue increased in its first quarter.
Sage said organic revenue rose 5.1% in the three months to the end of December. It noted that growth for the quarter excluding its US Payments business was 5.9%, and it said it is evaluating strategic options for this business, including a potential sale.
Organic recurring revenue rose 9.6%, Sage said, driven by software subscription growth of 31%.
Meanwhile, organic software and software related services revenue fell by 10% in the quarter, hit by the continuing planned migration of customers to subscriptions.
Sage noted that the further devaluation of the pound against the dollar in the quarter had caused a "slight" exchange rate tailwind.
"Q1 results are broadly in line with our expectations. We indicated at the time of the full year results that the early part of FY17 would start more slowly, with growth accelerating through the year and into FY18," said Chief Financial Officer Steve Hare in a statement.
"For the year as a whole we remain confident that we will achieve the guidance of at least 6% organic revenue growth and at least 27% organic operating margin," Hare added.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2017 Alliance News Limited. All Rights Reserved.
Related Shares:
Sage Group