- British software company The Sage Group reported a 5.9% increase in revenue in the first nine months of 2019 amid strong software subscription growth as it said it expected full-year revenue to 'slightly exceed' guidance.

Organic total revenue rose to £1.417bn over the period to 30 June while recurring revenue climbed 10.6% to £1.183bn. The company attributed this increase to software subscription growth of 28.3% to £752m as it continued to focus on attracting new customers and migrating existing customers to subscription and the cloud.

Revenue growth was, in part, assisted by tailwinds from the weaker comparator in the prior year and, in particular, strength in the UK as new regulations on digital tax submissions attract new and existing customers to the latest version of software, it added.

However, software and software-related services (SSRS) revenue declined by 15.5% to £195m for the first nine months of the year, reflecting the company's focus on driving subscription revenue.

'We expect full-year FY19 recurring revenue growth to slightly exceed guidance of 8-9% and the combined decline in SSRS and processing revenue to be slightly greater than the decline seen in the first nine months of the year. We expect organic operating profit margin to be at the lower end of the guided range of 23-25%,' said CFO Jonathan Howell.

At 8:14am: [LON:SGE] Sage Group The PLC share price was -65.4p at 751.2p

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