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A surge in Payroll and Sage One renewals saw Sage Africa’s overall revenue climb 14 percent for the first half of 2017.
The integrated accounting and payroll software provider reported that a 22 percent growth in subscription revenue accounted the most in the overall revenue generated in the period.
Sage noted in a statement to BusinessDay that it achieved “respectable growth” of 12 percent in the more mature South African business environment despite a “soft trading” condition. In West and East Africa, the company saw a revenue increase of 57 percent, while the Middle East delivered 23 percent growth.
“We are excited to see such strng growth across Africa and Middle East as enterprises and entrepreneurs embrace our business solutions to move to a world of invisible accounting and admin,” said Anton van Heerden, executive vice-president, Africa & Middle East at Sage, “It is especially pleasing to see strong renewals and an improved customer satisfaction rating (Net Promoter Score) as we grow our customer base.”
Looking ahead of the second half of the year, Heerden stated that the company can do more in the African region.
“Our team has worked hard to deliver exceptional results in a tough economic climate, and we look forward to further strengthening our market share during the second half of the financial year,” Heerden said.
Also speaking on the results, Stephen Kelly, chief executive officer of Sage said, “These are positive results in line with market expectations and there are clear signs our strategy is working, with seven or our nine largest geographies that collectively generate 95 percent of our revenues now delivering growth in excess of our revenue guidance.
“The investment in our go-to-market functions are starting to bear fruit: our cloud-enabled products are growing strongly and we have made progress in our new customer acquisition strategy, driving momentum in Q2 that will continue throughout H2 and as we exit financial year 2017.”
He further noted that by constantly updating payments and banking strategy and the company’s acquisition of Fairsail and Compass, Sage displayed commitment to the “golden triangle of accounting, people & payroll and payments & banking, reinforced by our cloud capabilities.
“We are focused on Sage continuing to invest in growth, predominantly through new customer acquisition with cloud-products, and supported by bolt-on acquisitions that accelerate the strategy.”
FRANK ELEANYA
