UPDATE 1-Teamviewer Q1 billings, profit beat consensus estimates

(Adds CEO comment, context on sports sponsorships)

BERLIN, May 4 (Reuters) - German remote connectivity software company Teamviewer reported first-quarter orders and core profit ahead of expectations on Tuesday, as it confirmed annual guidance that it recently cut as it announced major sports sponsorships.

Billings, management’s preferred revenue metric, gained 26% in the quarter even though the year-ago period saw an huge increase in demand for remote solutions due to the coronavirus outbreak.

“We are delivering sustainable growth combined with high profitability and will continue to do so which underpins the strength of our business model,” Chief Executive Oliver Steil said.

First-quarter billings at 146.6 million euros ($176.5 million) beat consensus estimates of 144.1 million euros in a poll of analysts published by the company. Core earnings gained 22% to 90 million euros, also ahead of consensus.

Teamviewer’s shares slumped in March after it announced it would become English soccer club Manchester United’s shirt sponsor, in a deal that seeks to raise its global profile but would cut into profit margins this year.

It followed up by signing a five-year sponsorship deal with world champion Lewis Hamilton’s Mercedes Formula One team and the German carmaker’s Formula E racing team.

Teamviewer said at the time that the sponsorship deals would squeeze its adjusted EBITDA margin to 49%-51% this year from a previous forecast of 55%-57%. It confirmed that guidance on Tuesday. ($1 = 0.8307 euros) (Reporting by Douglas Busvine; Editing by Caroline Copley and Maria Sheahan)