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Accenture growth hints at recovery

NEW YORK: Accenture has reported strong financial results for the fourth quarter and full 2011 fiscal year, ended Aug. 31, 2011, with record annual revenues, earnings per share, operating margin, and new bookings.

  • Europe lags rest of world
  • Communications and High Tech is star sector
  • Consulting and Outsourcing both strong

Growth in Europe was strong too, but lagged its global performance. In fourth quarter the firm's Europe, Middle East and Africa (EMEA) region was net revenues up 22% to $2.7 billion. Full year net revenues increased 13% to $10.9 billion.

In the global firm, fourth quarter, net revenues were $6.7 billion, an increase of 23 percent in U.S. dollars and 14 percent in local currency compared with the fourth quarter of fiscal 2010. Diluted earnings per share were $0.91, an increase of 38 percent. Operating margin was 13.8 percent. Operating cash flow was $1.4 billion and free cash flow was $1.2 billion, both quarterly records. New bookings were $8.4 billion, the company's highest quarterly bookings ever.

For the full fiscal year, net revenues were $25.5 billion, an increase of 18 percent in U.S. dollars and 15 percent in local currency. Diluted earnings per share were $3.40, an increase of 28 percent. Operating margin was 13.6 percent. Operating cash flow was $3.4 billion and free cash flow was $3.0 billion, which exceeded the top end of the company's expectations by more than $300 million. New bookings were $28.8 billion .

Pierre Nanterme, Accenture's chief executive officer, said, "Our excellent results for the fourth quarter and full fiscal 2011 reflect the continued momentum in our business as we execute our growth strategy. We hit the top end of our range for both revenues and EPS and are particularly pleased with the growth across all dimensions of our business. In addition, we generated free cash flow of $3 billion for the year, which enabled us to return more than $2.8 billion to our shareholders through dividends and share repurchases and still close the year with an exceptionally strong balance sheet.

"While we are closely monitoring the economic environment, we continue to see strong demand for our services -- demonstrated by record bookings of $8 billion in the fourth quarter and $29 billion in the full year. We are investing in our core business, in strategic initiatives and in our key geographic growth markets. Our industry expertise and technology leadership remain key differentiators for us, and we continue to run our business with rigor and discipline -- with a focus on driving profitable growth, increasing market share and delivering significant value to clients and shareholders."

Financial Review - Fourth Quarter

Fiscal 2011 Net revenues for the fourth quarter of fiscal 2011 were $6.7 billion, compared with $5.4 billion for the fourth quarter of fiscal 2010, an increase of 23 percent in U.S. dollars and 14 percent in local currency.

Consulting net revenues were $3.9 billion, an increase of 25 percent in U.S. dollars and 16 percent in local currency compared with the fourth quarter of fiscal 2010.

Outsourcing net revenues were $2.8 billion, an increase of 21 percent in U.S. dollars and 13 percent in local currency compared with the fourth quarter of fiscal 2010.

  • New Bookings for the fourth quarter were approximately $8.4 billion
  • Consulting new bookings were $4.16 billion, or 49 percent of fourth-quarter bookings.
  • Outsourcing new bookings were $4.28 billion, or 51 percent of fourth-quarter bookings.

Net Revenues by Operating Group

All of the company's operating groups achieved positive revenue growth in both local currency and U.S. dollars compared with the fourth quarter last year.

Net revenues by operating group for the fourth quarter were:

  • Communications & High Tech: $1.4 billion, compared with $1.2 billion for the fourth quarter of fiscal 2010, an increase of 23 percent in U.S. dollars and 13 percent in local currency.
  • Financial Services: $1.4 billion, compared with $1.1 billion for the fourth quarter of fiscal 2010, an increase of 23 percent in U.S. dollars and 13 percent in local currency.
  • Health & Public Service: $994 million, compared with $856 million for the fourth quarter of fiscal 2010, an increase of 16 percent in U.S. dollars and 12 percent in local currency.
  • Products: $1.6 billion, compared with $1.3 billion for the fourth quarter of fiscal 2010, an increase of 25 percent in U.S. dollars and 16 percent in local currency.
  • Resources: $1.3 billion, compared with $1.0 billion for the fourth quarter of fiscal 2010, an increase of 28 percent in U.S. dollars and 18 percent in local currency.

Net Revenues by Geographic Region

  • Americas: $3.0 billion, compared with $2.5 billion for the fourth quarter of fiscal 2010, an increase of 21 percent in U.S. dollars and 18 percent in local currency.
  • Europe, Middle East and Africa (EMEA): $2.7 billion, compared with $2.2 billion for the fourth quarter of fiscal 2010, an increase of 22 percent in U.S. dollars and 8 percent in local currency.
  • Asia Pacific: $957 million, compared with $688 million for the fourth quarter of fiscal 2010, an increase of 39 percent in U.S. dollars and 23 percent in local currency.

Full Year Fiscal 2011 Net revenues for the full 2011 fiscal year were $25.5 billion, compared with $21.6 billion for fiscal 2010, an increase of 18 percent in U.S. dollars and 15 percent in local currency.

  • Consulting net revenues were $14.9 billion, an increase of 21 percent in U.S. dollars and 17 percent in local currency compared with fiscal 2010.
  • Outsourcing net revenues were $10.6 billion, an increase of 15 percent in U.S. dollars and 13 percent in local currency compared with fiscal 2010.
  • New Bookings New bookings for the full fiscal year were $28.8 billion, an increase of 15 percent in U.S. dollars and 12 percent in local currency over fiscal 2010.
  • Consulting new bookings were $15.4 billion, an increase of 13 percent in U.S. dollars and 10 percent in local currency over fiscal 2010. Consulting represented 53 percent of new bookings in fiscal 2011.
  • Outsourcing new bookings were $13.4 billion, an increase of 18 percent in U.S. dollars and 14 percent in local currency compared with fiscal 2010. Outsourcing represented 47 percent of new bookings in fiscal 2011.

Net Revenues by Operating Group

All of Accenture's operating groups grew revenues in both local currency and U.S. dollars in fiscal 2011 compared with fiscal 2010.

Net revenues by operating group for the full fiscal year were:

  • Communications & High Tech: $5.4 billion, compared with $4.6 billion for fiscal 2010, an increase of 18 percent in U.S. dollars and 14 percent in local currency.
  • Financial Services: $5.4 billion, compared with $4.4 billion for fiscal 2010, an increase of 21 percent in U.S. dollars and 18 percent in local currency.
  • Health & Public Service: $3.9 billion, compared with $3.6 billion for fiscal 2010, an increase of 8 percent in U.S. dollars and 7 percent in local currency.
  • Products: $5.9 billion, compared with $5.0 billion for fiscal 2010, an increase of 19 percent in U.S. dollars and 16 percent in local currency.
  • Resources: $4.9 billion, compared with $3.9 billion for fiscal 2010, an increase of 25 percent in U.S. dollars and 21 percent in local currency.

Net Revenues by Geographic Region

  • Americas: $11.3 billion, compared with $9.5 billion for fiscal 2010, an increase of 19 percent in U.S. dollars and 17 percent in local currency.
  • Europe, Middle East and Africa (EMEA): $10.9 billion, compared with $9.6 billion for fiscal 2010, an increase of 13 percent in U.S. dollars and 11 percent in local currency.
  • Asia Pacific: $3.4 billion, compared with $2.5 billion for fiscal 2010, an increase of 35 percent in U.S. dollars and 23 percent in local currency.

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