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Licensing business fuels growth in all regions
Sales growth was evident in all regions, with licensing revenues showing the highest growth rates. Maintenance revenues also increased across the board while demand for professional services differed from region to region.

Sales growth was highest in the Central and Eastern Europe/Asia region, where sales climbed to €63.1 million, representing an increase of 13 percent. This significant growth resulted almost exclusively from the licensing business, which increased by 49 percent. Operating income (EBITA) for this region grew at a lesser rate of 40 percent to €11.9 million.

In Southern and Western Europe, including Latin America, sales increased by 11 percent to €59.8 million. At €1.4 million, EBITA – which was weaker than in the previous year – reflected expenses for intensification of our activities in Latin America and initial efforts to expand our position in the Middle East. This was complemented by a postponement of some larger licensing projects, amongst other things to public authorities being blocked by the election campaign in Mexico.

In the North America/Northern Europe region, we increased revenues by 9 percent to €112.7 million. With a share in Group sales of 48 percent, this region remains Software AG’s main sales driver. The licensing business grew by 20 percent to €37.7 million resulting in additional momentum for this region’s EBITA, which in turn grew by 17 percent to €34.9 million. The largest growth in this region was achieved in the United Kingdom, where sales climbed from €14.5 million to €22.4 million in the first six months, representing an increase of 55 percent.

  Revenue and earnings trend by region

 

Revenue

EBITA

€ millions

H1 2006

H1 2005

H1 2006

H1 2005

North America/Northern Europe

112.7

103.6

34.9

29.9

Central and Eastern Europe/Asia

63.1

54.6

11.9

7.1

Southern and Western Europe/Latin America

59.7

53.3

1.4

4.5

 
 
 
     
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