MANNHEIM, Germany (Reuters) - SAP, Europe's largest software company, expects its enterprise cloud business to break even this year, its chief executive said on Thursday.
"Over the past year, less investment was necessary and revenues increased significantly," Chief Executive Bill McDermott told SAP's annual shareholders' meeting, referring to SAP's HANA Enterprise Cloud, its Internet-based software.
"We are already increasing profitability, expecting break-even this year and 40 percent gross margin in the mid-term," McDermott said.
He also reiterated that SAP's business networks, which include ecommerce specialist Ariba, contract staffing firm Fieldglass and staff travel and expenses manager Concur, will reach 80 percent gross margin in a mature state.
At the moment SAP's business networks reaches a gross margin of around 75 percent, McDermott said.
(Reporting by Harro ten Wolde and Ilona Wissenbach; Editing by Maria Sheahan)