Product revenue in the Digital Business grew 10 percent in the second quarter and 5 percent firsthalf reflecting strong transformation progress. Combined with a strong quarter for Adabas &Natural (A&N) this led to total product revenue growing 17 percent in the second quarter and 6percent in the first half.
Bookings in the Digital Business grew 8 percent in the second quarter and 13 percent in the firsthalf. A&N second quarter bookings growth of 48 percent led to first half growth of 8 percent.
Digital Business Subscription Momentum with 94 percent of second quarter bookings fromsubscription and Software as a Service (SaaS). Annual recurring revenue (ARR) up 9 percent yearon-year. Recurring revenue growth drove overall product revenue growth in the first half, reaching 91 percent of our product revenue total.
Operating margin (EBITA, non-IFRS) of 27.8 percent for the quarter and 21.3 percent for the halfyear represents a strong performance and reflects better than expected results in A&N.
Full-year guidance reconfirmed and commitment to 2023 ambitions reiterated.