SAP shares plummet on trimmed outlook

Shares in German software giant SAP plunged on Monday after it downgraded its outlook on falling demand due to a renewed surge in coronavirus infections.

At 15:00, shares in Frankfurt were down 20.0% at €99.89, dragging down Germany's blue-chip DAX index, which fell 2.8%.

The tech company, based in the southern German town of Walldorf, trimmed its 2020 revenues forecast to between €27.2 billion and €27.8 billion, compared with a previous estimate of €27.8 billion to €28.5 billion as "demand recovery has been more muted than expected" due to further restrictions amid the latest coronavirus spikes.

SAP, which offers both traditional software and cloud computing services, said it had benefitted from firms doing more work online.

But the company said its customers, "particularly those in hard hit industries, continue to be impacted by the economic consequences of the Covid-19 pandemic".

It said it no longer expects a recovery in its Concur business travel-related revenues for the rest of the year.

Revenues fell four percent year-on-year in the third quarter to €6.5 billion, with adjusted operating profit slid one percent to €2.1 billion.

The results "missed expectations across the board," according to Berenberg analyst.

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