SoftwareONE on track to hit 2022 targets amid 'macroeconomic uncertainties'

The group’s CEO said this marks its fourth consecutive quarter of ‘over mid-teens’ growth

Cloud licencing giant SoftwareONE has posted strong results for its Q2 with revenues and profits both rising by double digits.

Revenues grew 16.4 per cent to CHF 277m (€287m) in Q2 while EBITDA levelled up 13 per cent to CHF 75.8m (£66.45m).

Looking at the first half of the year the group grew 15.4 per cent to CHF 514.6m, with EBITDA growth of 9.3 per cent at CHF 117.9m.

"Our performance in H1 2022 puts us fully on track to meeting our FY2022 targets. This is the fourth consecutive quarter of over mid-teens growth, which is a testament to our strategy and resilient ‘glocal' (sic) business model," said SoftwareONE CEO, Dieter Schlosser.

"Against a backdrop of macroeconomic uncertainties, organisations around the world continue to prioritise digital transformation to innovate, drive growth and tackle cost challenges - our offering and capabilities are ideally suited to support them on their journeys."

Software & Cloud

Revenues for this business line were up 7.9 per cent to CHF 152.8m for the second quarter.

SoftwareONE said that in regards to Microsoft, gross billings came to $9.6bn in H1, growing in line with the overall Microsoft market.

It added momentum was positive across all customer segments, although public SMEs showed lower growth in Q2.

Microsoft Cloud billings demonstrated a double-digit rise, making up 77 per cent of total Microsoft volume in H1 2022, compared to 73 per cent for FY2021.

Double-digit growth across regions

The Swiss giant said all regions reported double-digit gross profit growth in constant currency in H1 2022, supported by the global trend towards digital transformation and the cloud.

EMEA saw gross profit up 14.2 per cent year on year in H1 2022, while NORAM grew 18 per cent year on year, uplifted by strong results in Microsoft.

APAC posted gross profit growth of 17.4 per cent, which SoftwareONE said demonstrated strength across both business lines and particularly in markets such as China, Australia and Singapore.

LATAM was up 13.7 per cent driven by strong performances in Brazil and Colombia.

Divestment of Russian operations

After suspending a significant part of its business operations in Russia in March, SoftwareONE subsequently divested the business and transitioned its employees to a new owner.

As a consequence, SoftwareONE recorded a mainly non-cash loss in the amount of CHF 35.8m during Q2 2022 due to the deconsolidation of the Russian business and impairment of assets.