Can consulting manage Brexit?
Home » News » Accentures lowers fiscal outlook

Accentures sees Q3 revenues grow, but lowers full year outlook

Accenture-NYSE-July2001
Accenture-Pierre-Nanterme

New York: Accenture has reported financial results for the third quarter of fiscal 2013, ended May 31, 2013, with net revenues of $7.2 billion, an increase of 1 percent in U.S. dollars and 3 percent in local currency over the same period last year, slightly below the company's guided range of $7.25 billion to $7.50 billion.

  • Revenues up 1% to $7.2 billion
  • New bookings are $8.3 billion, with consulting bookings of $3.9 billion and outsourcing bookings of $4.4 billion
  • Operating income is $1.09 billion and operating margin is a record 15.2%
  • Firm updates business outlook

Net income for the quarter was $874 million, compared with $763 million for the third quarter last year, and includes the favourable impact from the $50 million reorganization benefit.

Operating income for the quarter increased to $1.14 billion, including the reorganisation benefit. Excluding the benefit, operating income increased 3 percent, to $1.09 billion, and operating margin expanded to 15.2 percent.

Consulting net revenues for the quarter were $3.9 billion, a decrease of 2 percent in U.S. dollars and flat in local currency compared with the third quarter of fiscal 2012. Flat growth in consulting revenues in the quarter reflected a lower level of consulting bookings than expected and contracts converting to revenue at a slower rate overall than expected.

Outsourcing net revenues were $3.3 billion, an increase of 4 percent in U.S. dollars and 7 percent in local currency over the third quarter of fiscal 2012.

New bookings for the quarter were $8.3 billion, with consulting bookings of $3.9 billion and outsourcing bookings of $4.4 billion.

Pierre Nanterme, Accenture's chairman and CEO, said, "Our third-quarter results were solid overall, although consulting revenues were below our expectations. We delivered very good profitability, with operating margin expansion and EPS growth reflecting the disciplined management of our business. Quarterly new bookings of $8.3 billion brought us to nearly $25 billion for the first three quarters of the year, which positions us well for the future and demonstrates the relevance of our services and capabilities to the needs of our clients. Our balance sheet remains very strong, with a cash balance of $5.9 billion, and we generated $1.4 billion in free cash flow for the quarter.

"We continue to make targeted investments to further differentiate our industry and technology capabilities, to add new skills, and to seize the opportunities in key growth areas. With our focused strategy and diverse portfolio of business, we remain confident in our ability to continue to drive profitable growth and deliver value to our clients and shareholders."

Net revenues by operating group were:

  • Communications, Media & Technology: $1.43 billion, compared with $1.51 billion for the third quarter of fiscal 2012, a decrease of 5 percent in U.S. dollars and 3 percent in local currency.
  • Financial Services: $1.57 billion, compared with $1.50 billion for the third quarter of fiscal 2012, an increase of 5 percent in U.S. dollars and 8 percent in local currency.
  • Health & Public Service: $1.19 billion, compared with $1.09 billion for the third quarter of fiscal 2012, an increase of 9 percent in U.S. dollars and 11 percent in local currency.
  • Products: $1.72 billion, compared with $1.70 billion for the third quarter of fiscal 2012, an increase of 1 percent in U.S. dollars and 4 percent in local currency.
  • Resources: $1.28 billion, compared with $1.35 billion for the third quarter of fiscal 2012, a decrease of 5 percent in U.S. dollars and 3 percent in local currency.

Net revenues by geography were:

  • Americas: $3.44 billion, compared with $3.23 billion for the third quarter of fiscal 2012, an increase of 7 percent in U.S. dollars and 8 percent in local currency.
  • Europe, Middle East and Africa (EMEA): $2.78 billion, compared with $2.91 billion for the third quarter of fiscal 2012, a decrease of 4 percent in U.S. dollars and 1 percent in local currency.
  • Asia Pacific: $975 million, compared with $1.02 billion for the third quarter of fiscal 2012, a decrease of 5 percent in U.S. dollars and flat in local currency.

Share this article