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Capgemini profits slip in 2012 on record Group revenue

Paul Hermelin

Paris: Capgemini, Europe's biggest IT consultancy and services company, saw profits slip in 2012 on record revenue.

  • Revenue of €10.3 billion, up 5.9%
  • Operating margin rate of 7.7%, up 0.3 points
  • Profit for the year attributable to shareholders of €370 million
  • Net cash and cash equivalents of €872 million

Profit attributable to shareholders in 2012 was €370 million, down from €404 million in 2011, on revenue that exceeded €10 billion for the first time — up 5.9% to €10.3 billion.

Bookings during the year totalled €10,084 million, down marginally on 2011 (€10,122 million).
The operating margin for the year was €787 million, or 7.7% of 2012 consolidated revenue, representing an increase of 0.3 points on 2011.

Paul Hermelin, Chairman and Chief Executive Officer of the Capgemini Group commented, "Despite the economic slowdown observed in 2012 in the euro zone, the Group reports a solid performance — in line with its commitments — and proves once again its ability to hold firm against economic fluctuations. We have strengthened our global focus — as demonstrated by our success in North America, the world's leading IT services market, grew our offshore resources and enriched our services portfolio. In 2013 more than ever, we will seek to establish Capgemini as a global leader alongside the major market players, able to satisfy client requirements on competitivity(sic) and innovation."

Operations by major region:

  • France , which retains its number-one spot among the Group's regions, saw revenue down 2.0%
  • North America saw revenue growth of 16.4%
  • United Kingdom & Ireland region reported revenue growth of 8.1%
  • Benelux recorded an 11.7% decline in revenues in 2012 with a sequential stabilization in the fourth quarter
  • Rest of the World, revenue increased 8.8% on average with the Nordic countries and the Asia-Pacific region reporting the strongest growth

Operations by business:

  • Technology Services — the Group's leading business in terms of revenue (over 40%) — reported growth of 3.5%
  • Outsourcing Services — which contributes 40% of Group revenue — reported revenue growth of 0.5%
  • Sogeti (15% of Group revenue) reported a 1.3% decline in revenue
  • Consulting Services (5% of Group revenue) reported a 3.6% decline in revenues like-for-like.
  • Despite a slight fall in operating margin rate in 2012, Consulting Services remains the Group's most profitable business (11.2%)

Headcount:

On December 31, 2012, the total headcount of the Group was 125,110 employees compared to 119,707 employees at the end of 2011.

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