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Capgemini Group enjoys solid Q3, driven by US, UK, and Asia

Paul Hermelin

Paris: Capgemini Group reported revenues of €2,523 million yesterday, up 6.1%, for its third quarter of 2012, despite what it calls, "an uncertain economic context". The growth was driven by businesses in the US , UK and Asia Pacific.

Paul Hermelin, Chairman and Chief Executive Officer of Capgemini Group commented, "Our continued revenue growth, the stabilization of prices and the rise in our headcount are all signs of our resilience, despite macro-economic fluctuations.

"The development of our offering portfolio towards high value-added segments and of our geographical mix in favour, primarily, of the United States, as well as the continuation of our offshore strategy, allow us to provide an optimal response to client demands."

Business break down:

  • Consulting Services, Technology Services and Local Professional Services reported average revenue growth of 1.3%, like-for-like.
  • Technology Services (+3.4%) continued to grow at the same rate as last quarter,
  • Consulting Services and Local Professional Services (Sogeti) contracted (-4.0% and -2.4% respectively).
  • Outsourcing Services reported growth of 0.5%.

Regional Performance:

  • North America — which emerged as the Group's number one market in Q3 in revenue terms — continued to report excellent performance (+24.9% on published revenues and +10.9% like-for-like).
  • The United Kingdom and Ireland region enjoyed ongoing growth (+12.7% on published revenues and 1.4% like-for-like), with increases across all businesses more than offsetting the foreseen drop in revenues with the UK tax authorities.
  • France reported a 4.0% drop in revenues in the quarter.
  • Benelux revenues continued to fall (-13.8%), although measures taken by the Group from last September should enable a marked recovery in profitability in this region from 2013.
  • The other regions reported average revenue growth of 3.9%, driven by the dynamism of the Asia Pacific region (+18.5%) and the Nordic countries (+10.7%).

Bookings recorded since the beginning of the year total €7,173 million, down slightly on the same period in 2011. Bookings recorded by Consulting Services, Technology Services and Local Professional Services (Sogeti) are broadly stable.

As of September 30, 2012, the total headcount of the Group was 123,229, up 5% on one year previously. Capgemini recruited 30,000 new employees over the past 12 months. The headcount includes 47,943 offshore employees, representing 39% of the total headcount, including 38,731 in India at that date.

Bolstered by this solid performance, Capgemini confirms its objective of like-for-like growth in excess of 1% for the year as a whole and an increase in the operating margin over the whole year, in line with the general consensus.

The 6.1% rise is on published revenues (i.e. at current Group structure and exchange rates) for the same period last year and 1.0% like-for-like (i.e. at constant Group structure and exchange rates): the difference between the two rates is mainly due to favorable exchange rate effects.

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