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Enterprise software giant Sage group (LON:SGE) announced organic revenue growth of 7.6% for the three months ended 31st December. Recurring revenues during the period were 10.5% higher, driven by a 27.7% increase in subscriptions. However, licence-related revenues dropped by 5.8% as business moved towards software-as-a-service models.
Chief executive Steve Hare commented: “We have been encouraged by the strong start to FY19, reflecting the renewed focus on high-quality subscription and recurring revenue as we continue the journey to becoming a great SaaS business. Looking ahead we reiterate our full year guidance for FY19 as outlined at the FY18 results announcement“.
The price of Sage shares rose by 6.17% to 629.60p (as of 12:55 GMT).