Sage Group Plc said that organic revenue has been impacted by a decline in recurring revenue growth and a drop in licenses in its enterprise software business.As a result, 2018 full year guidance has been revised a percentage-point down to around 7 percent organic revenue growth, according to a statement Friday. The organic operating margin of 27.5 percent has remained unchanged.”Growth over the first half of 2018 was lower than our expectations as the pace of execution has been slower than we planned,” said Stephen Kelly, chief executive officer, Sage Group.Sage is currently transitioning to a subscription model, attempting to get new customers to purchase new cloud-based products.Enterprise license contracts in the U.S., Africa and the Middle East also dropped. This compares to North America performing strongly over the last quarter of 2017.Over the six months ended March 31, organic recurring revenue growth is expected at 6.4 percent, down from 11.1 percent the year previous. Software subscription growth of 25.3 percent is down from 30.7 percent.The U.K. software company’s first-half 2018 results announcement is still set to be published on May 2.
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