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SAGE H1: SUBS OFFSET LICENSE DROP

Guy Berruyer, SageA 5-percent rise in subscription revenues offset a 4-percent in decline in income from software and related services for the Sage Group's first half ended March 31. Pre-tax profit rose 2 percent to about $284 million while worldwide revenue hit roughly $1.07 billion, up 2 percent for the half just ended. That came as the company announced plans to introduce Sage One in the U.S. "imminently."
Changes in performance were based on results in pounds. The results exclude operations of the recently sold Sage Healthcare.  The company reported an 81-percent renewal rate for support contracts, although the number of contracts had declined because of consolidation of contract offerings. It also said the EBITDA margin for the half just ended stayed at 27 percent, the same as a year ago. "There are a few areas of our business that performed less well," CEO Guy Berruyer noted in this week's earnings webcast. The company also reported that revenue from sales of the X3 application grew by 3 percent. Berruyer said there are now 240 X3 resellers, up from 150 eighteen months ago. Group finance director Paul Harrison said that the current rebranding of North American products is vital to cross-selling. Cross selling Sage payments in into the accounting software installed base in the United States showed a 13-percent increase in revenue in the recently ended half, producing a 10-percent increase in payments revenue. Cross selling now represents 25 percent of payments revenue. Berruyer also said the company would be run more centrally in order to grow revenue.
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