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Solid first quarter from Capgemini, led by US

Paul Hermelin

Paris: Capgemini Group yesterday reported consolidated revenues of €2,565 million for the first quarter of 2012, up 9.2% on the same period last year.

  • Technology Services grew by 6.6%
  • North America grew by 13%
  • Benelux still struggling, down 7.8%
  • 2012 Outlook confirmed

Revenues were up 4.3% on a like-for-like basis (i.e. at constant Group structure and exchange rates); the difference between the two rates is mainly due to acquisitions including Prosodie in France and Aive in Italy in the last twelve months.

This 4.3% growth in revenues, on a like-for-like basis, breaks down as follows:

  • by business: Consulting Services, Technology Services and Local Professional Services reported average growth of 5.2%. The greatest increase was recorded by Technology Services (6.6%), up slightly on Q4 2011. Outsourcing Services reported average growth of 3.0%.
  • by region: as was already the case in Q4 2011, North America reported the highest rate of growth (+13.0%) driven by Technology Services, Consulting Services and Local Professional Services. The United Kingdom and Ireland region recovered, reporting growth in revenues of 3.9%, higher than the growth rate reported in the previous four quarters; France — which retains its position as the Group's leading country in revenue terms — increased 1.0%. Benelux was the only region to report a contraction in revenues (-7.8%), due to the ongoing crisis which continues to affect the economy of these three countries. The other regions of the Group reported average growth of 7.7%.

Bookings in the first quarter 2012 totalled €2,145 million, down on Q1 2011 bookings. However, the book-to-bill ratio for Consulting Services, Technology Services and Local Professional Services remained positive: 1.02 for the Group as a whole.

Capgemini says it continued to adopt what it calls a balanced recruitment policy between its historical countries and "offshore" bases, which employed 45,131 individuals as of March 31, 2012 (including 36,204 in India), representing 37.4% of the total headcount at this date of 120,542 employees.

Strengthened by these results, the Group confirms its objectives for 2012: limited organic growth in revenues and an increase in the operating margin rate.

Paul Hermelin, Chief Executive Officer of Capgemini Group commented, "We will, of course, continue to closely monitor changes in the macro-economic environment, however the good level of demand in the first quarter 2012 in several of our major markets — particularly North America — reinforces our objectives of revenue growth and an improvement in the operating margin. The enhancement of our product portfolio is bearing fruit."

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