Capgemini News Blog

Capgemini News Blog

Opinions expressed on this blog reflect the writer’s views and not the position of the Capgemini Group

Renewed organic growth blooms in Capgemini Q3 Results

Categories : CoveragePress releases
Our Q3 results have been published, with an optimistic return to growth this year of 1.6% in revenues.

Technically, reported revenues were slightly down based on negative currency effects, but the organic headline growth figure is a positive indicator for the Group.


The following are the highlights of the report, contained in our press release:
  • Consolidated revenues of €2,451 million, (+1.6% vs. Q3 2012 on a like-for-like basis)
  • Outsourcing Services return to growth, (+2.2%)
  • Sogeti has steadily recovered over the year (+1.5%)
  • Asia-Pacific and Latin America once again reported the strongest growth (+14.6%)
  • North America grew moderately by 1.3%
  • France reported a 3.4% increase in revenues
  • United Kingdom and Ireland contracted 2.5% due to a fall in public sector revenues in line with forecasts
  • Capgemini repurchased 85% of its OCEANE convertible bonds for €687 million and will assign approximately  €100 million towards further neutralising dilution in the coming months

Paul Hermelin, Chairman and Chief Executive Officer of Capgemini Group stated that: “This year, we have reported steady improvement in our performance, quarter after quarter, a trend that should continue in Q4. Our portfolio of strategic offerings generates a growing share of our bookings, demonstrating our ability to anticipate the evolution of client demand, particularly in innovation and cost rationalization.”
 
Aiman Ezzat, Group Chief Financial Officer, was upbeat in a video released in tandem with the results, stating firmly that “we are back to growth”. He contextualised Capgemini Consulting’s 7% decline year-on-year as a result of the ‘cyclical market’, and also took the opportunity to reinforce that “Capgemini continues to focus on recruiting young graduates, who represent more than 40% of total recruitments since the beginning of the year.”





Other highlights included:
  • The upgrade by S&P of the Group to “BBB” rating
  • the announcement of recent wins, including a €60 million infrastructure outsourcing deal for a European natural gas and electricity producer.
  • Announcement of headcount rising above 130,00 (with 42.3% in offshore delivery centres).
  • Share price is up 40% YTD.
The results gathered attention from the press, including the WSJ, who commented that the Group had “returned to like-for-like growth in the third quarter, boosted by companies' outsourcing their IT services.” The news was also referenced by Reuters – who tied the operating margin to ‘not impossible’ 2015 forecast figures - and Telecompaper who commented that "the company expects the improving trend seen over the course of the year to continue in Q4."

About the author

Business Management Graduate
Business Management Graduate

Leave a comment

Your email address will not be published. Required fields are marked *.