Peachtree 2013 Annual Report Download - page 38

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Financial and operating review continued
Regional performance continued – Americas
Total Americas underlying revenue grew by 8%
to £448.2m (2012: £416.5m), with organic revenue
growth of 6% (2012: 2%). Organic recurring revenue
grew 7% (2012: 4%), and organic SSRS revenue
grew 2% (2012: 6% contraction).
Our North America business was successful in
delivering on a number of initiatives during the year.
Sage Business Care, our premium support offering,
remains a primary driver of growth in North America
and the continuing shift towards recurring revenue,
which accounts for 80% of revenue. Our strategy
of upselling premium support gained traction with
Sage 100 and Sage 300 customers, and we were
also particularly successful in migrating Sage 50
customers in the US and Canada to premium support.
The mid-market team executed well in migrating
existing customers to newer ERP products. This
helped to support a stand-out performance by Sage
ERP X3, with revenue increasing by 48%, which was
also driven by new customer acquisition.
Highlights
– Significant acceleration in organic growth from 2% to 6%;
– Continued progress in upselling premium support contracts;
– Strong performance from Sage ERP X3;
– 20% organic growth in integrated payments revenue;
– Sage Data Cloud announced at the North America Sage
Summit, heralding the launch of new mobile applications; and
– Disposal of North American non-core products.
Key data
£m 2013 2012
Underlying revenue £448.2m £416.5m
EBITA £115.0m £107.3m
EBITA margin 26% 26%
Our payments business grew by 4%, reflecting solid
growth. We continued to focus on cross-selling
integrated payment services into the accounting base.
The number of customers who use integrated
payments grew to over 12,400, with an associated
increase in cross-sell revenue growth of 20%.
Brazil contributed £49.0m of revenue in the year
and EBITA of £12.2m. The accounting, payroll and tax
software business continued to deliver double-digit
growth whilst the slowdown in the economy continued
to impact the content business. Our significant foothold
in Brazil means we are in a strong position to benefit
from the structural growth opportunities offered by
this market.
The EBITA margin for Americas was 26% (2012: 26%).
Pascal Houillon
Chief Executive Officer, North America and Brazil
Underlying revenue
(£m)
North America
399.2
Brazil
49.0
36 The Sage Group plc | Annual Report & Accounts 2013