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Capgemini sees first half profit hike but consulting revenues slip

Paul Hermelin

Paris: Europe's biggest IT consulting firm, Capgemini, saw profits up by almost a third in the first half of 2013, despite a big slip in consulting revenues and continuing struggles across Europe.

Profit attributable to shareholders in the six months to June 30 surged 31% to €176 million. Consolidated revenues of €5,033 million were down 2.3% at current group structure and exchange rates and down 1.1% on a like-for-like basis. The fall in revenues was steepest in the first quarter than the second — down 1.7% and 0.4% respectively.

Revenue breakdown:

  • by business, The combined revenue of Consulting Services, Local Professional Services and Technology Services fell 1.5%. Technology Services grew slightly by 0.3%, while Consulting Services and Local Professional Services (Sogeti), more sensitive to the economic environment, contracted 9.0% and 3.9% respectively. Outsourcing Services revenues were almost stable, down 0.3%.
  • by region, the emerging countries of Asia Pacific and Latin America reported strong growth (+10.5%). The United Kingdom and Ireland region contracted 2.2%. With an increase of revenues of 0.5%, North America is back to growth which should continue in the second-half. Activity in France contracted 2.2% in H1, although the firm saw a 0.7% growth in revenues in Q2. Benelux reported a 6.2% fall in revenues in H1, with the contraction limited to 3.7% in Q2. The rest of Europe (-1.7%) is also showing signs of stabilization.

Bookings totaled €4,824 million in H1 2013. The combined book-to-bill ratio of Consulting Services, Local Professional Services and Technology Services was 1.06.

At the end of H1, the total headcount of the Group was 127,968. Offshore employees totaled 54,280, up 18% (including 44,195 in India) and represented 42% of the total headcount.

Its first half performance supports the Group's annual guidance — it is looking for organic revenue growth in line with 2012.

"In a challenging economic environment, we met our commitments and reported an improvement in our profit for the period, enabling us to start the second half with confidence", said Paul Hermelin, Chairman and Chief Executive Officer of Capgemini Group.

Full results, including detailed regional breakdowns, are available here.

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