Software provider Sage Group said its first-quarter revenue grew by 6.3%, while organic recurring revenue grew by 7%, underpinned by software subscription growth of 26%. North America performed strongly, though France continued to significantly underperform relative to the rest of the group, weighing on both organic revenue and recurring revenue growth. A recovery in France was expected in the second half of the year, as previously indicated, Sage said "Q1 results are in line with our expectations," chief financial offier Steve Hare said. "As we outlined at the time of the full year results, we have invested heavily in sales training in Q1 to set up the business for success, particularly in Sage Business Cloud, resulting in the delay of some revenue into Q2." "Quarterly phasing of organic revenue growth is therefore expected to be similar to prior financial years." "We expect acceleration throughout the year including a stronger Q2 and we reiterate our full year guidance of around 8% organic revenue growth and around 27.5% organic operating margin for FY18."
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