UK software firm Sage reports 7.6 pct rise in Q1 organic revenue

LONDON, Jan 17 (Reuters) - British software company Sage said it had made a strong start to its financial year after its organic service revenue for the three months to end-December rose 7.6 percent to 465 million pounds ($598.5 million).

Sage, which supplies software to millions of small and medium sized businesses, reiterated the guidance it set out at its full-year results in November, when it said revenue growth would be constrained in the short term as it focuses on subscription services.

It said on Thursday that recurring revenue increased by 10.5 percent in the first quarter to 387 million pounds, underpinned by software subscription growth of 27.7 percent to 237 million pounds. ($1 = 0.7769 pounds) (Reporting by Paul Sandle, editing by James Davey)