News Column

Q1 2014 Revenue up 2.3% Crossed the 50,000 Employee Threshold in India

April 30, 2014



ENP Newswire - 30 April 2014

Release date- 29042014 - Paris-The Capgemini Group generated consolidated revenues of EUR2,503 million in the first quarter of 2014, up 2.3% at constant Group structure and exchange rates compared to the first quarter of 2013.

At current Group structure and exchange rates, revenues were stable (+0.2%)*.

Q1 2014 revenues

Q1 2013 revenues

Change

Q1 2014/

Q1 2013

EUR2,503 million

EUR2,499 million

At constant Group structure and exchange rates

2.3%

At current Group structure and exchange rates

0.2 %

(*)The difference between these two rates is mainly due to the unfavorable evolution of the U.S. dollar and the Brazilian real

The change in revenues at constant Group structure and exchange rates breaks down as follows:

by business, Group growth is driven by Outsourcing Services (+3.7%) and by Technology Services (+2.5%), together they represent 80% of Capgemini's revenues. Conversely, the most cyclical businesses continue to be affected by a weak demand environment in Continental Europe: Revenues for Local Professional Services (Sogeti) are stable (-0.1%), while Consulting Services decline is limited to 2.6%.

by region, it is again the Asia-Pacific and Latin America region that reported the fastest growth (+11.7%). The recovery of activity in North America is confirmed with a growth rate of 4.1%. The United Kingdom and Ireland region rose 2.7% despite the continuing decline in the public sector. France confirmed a moderate growth of 1.0%. With the exception of Benelux, which posted a decline (-2.9%) due to the weak market, the rest of Europe grew slightly (+1.2%).

Bookings amounted to EUR2,224 million in the first quarter of 2014, up 5% compared to the same period in 2013. The combined book-to-bill ratio of Consulting Services, Technology Services and Local Professional Services stood at 1.05.

As of March 31, 2014, the total headcount of the Group was 134,000. Offshore penetration increased by 4 points year on year to 45%, representing more than 60,000 employees.

In addition, in April, the Group crossed the threshold of 50,000 employees in India. The first European IT Services company to have developed massively in this country, Capgemini has a tremendous expertise and an undeniable asset to gain market share.

Based on these results, the Group confirms its objectives for 2014: an organic revenue growth of 2% to 4% and an operating margin rate between 8.8% and 9.0%. Organic free cash flow is expected to exceed EUR500 million.

For Paul Hermelin, Chairman and CEO of Capgemini: 'We began 2014 with a stronger momentum than 2013. It is by playing our two strengths - competitiveness and innovation - that we best meet our clients' needs. Competitiveness, supported by the power of our offshore platforms. Innovation, through the constant development of new offerings around cloud, big data and digital to enable our clients' business transformation.'

Appendix

Change in revenue by region:

Current

Organic

Current

Sequential

%

Year-on-year %

Sequential

%

Year-on-year %

Q1 2013

Q4 2013

Q1 2014

Q1 14 /

Q4 13

Q1 14 /

Q1 13

Q1 14 /

Q4 13

Q1 14 /

Q1 13

North America

501

527

495

5.9

1.2

4.4

4.1

UK and Ireland

510

512

539

5.3

5.7

3.8

2.7

France

551

584

556

4.7

1.0

4.7

1.0

Benelux

273

282

265

6.2

2.9

6.2

2.9

Rest of Europe

469

478

466

2.7

1.0

2.5

1.2

Asia Pacific & Latin America

195

224

182

19.0

6.4

15.4

11.7

Total

2499

2607

2503

4.0

0.2

3.6

2.3

Change in revenue by business (at constant Group structure and exchange rates):

% of revenues

Q1 2013

% of revenues

Q1 2014

Q1 2014 /

Q1 2013

Consulting Services

4.7

4.5

2.6

Local Professional Services

15.4

15.6

0.1

Technology Services

40.6

39.1

2.5

Outsourcing Services

39.3

40.8

3.7

Utilization rates (%):

Q1 2013

Q2

2013

Q3

2013

Q4 2013

Q1 2014

Consulting Services

62

69

64

67

65

Local Professional Services

80

82

83

82

81

Technology Services

79

80

81

81

80

Q1 2014 major events:

10-year contract with the Norwegian oil group Statoil for the management and transformation of its applications pool;

5-year contract with Hema, a Dutch chain of major department stores, Capgemini becoming a privileged partner;

extension of the strategic partnership with VMWare regarding the creation of solutions dedicated to cloud orchestration;

launch of the Global Engineering Services offering;

launch of 'Digital Customer Experience' (DCX), a new global service line to help companies with the digitalization of their client interactions.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: ENP Newswire


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters