The Capgemini group continues on its momentum with a strong increase in revenues and an organic growth of 1.5%.
Paris, 29 October 2015 – The Capgemini Group achieved revenues of €3,036 million in Q3 2015, up 17.2% at current Group structure and exchange rates compared to the same quarter in 2014. At constant Group structure and exchange rates, organic revenue growth was 1.5%.
For Paul Hermelin, Chairman and CEO of Capgemini Group: "After the strong performance in H1, the Group continues on its momentum with a strong increase in revenues (+17.2%) and an organic growth of 1.5%. Customer demand was mainly driven by innovation, as evidenced by the 21% increase in revenues in SMAC. The Group has successfully launched its "Cloud Choice" offering during this quarter and multiplies new deals in Digital, imposing itself as one of the key partners in this field. The integration of the US firm IGATE, whose acquisition was completed on July 1st, reinforces our status as a market leader with a strong presence in North America, where we now achieve 31% of our revenues, and a Global Production Center network with more than 96,000 employees. Furthermore, the combination of service offerings and capabilities of Capgemini and IGATE has already resulted in new business wins, notably in financial services and in consumer products and retail. This good momentum and our bookings growth in the quarter lead us to confirm our guidance for 2015.”
The Group achieved revenues of €3,036 million in Q3 2015, representing an increase of 17.2% compared to the one published for the third quarter of 2014. The difference between organic and current growth is due to the relative evolution of Group currencies compared to the Euro and the acquisition of IGATE finalized on July 1st 2015. The performance of IGATE is in line with expectations and its integration is on schedule.
TRENDS BY BUSINESS
On a like-for-like basis, Consulting Services (4% of Group revenues) continue to accelerate, with an increase in revenues of 6.7% in Q3 vs. 4.4% in H1. Local Professional Services (Sogeti) (14% of Group revenues) is also slightly improving with growth of 1.4% (against 0.5% in H1). Application Services (60% of sales) which already had strong momentum in H1 with 5.1% growth, continues to support the Group's growth. Revenue growth for the quarter, primarily driven by the acceleration of clients’ investment in digital and cloud projects, reached 8.2%. Other Managed Services (22% of Group revenues) see their activity decrease by 13.7% due to the anticipated decline in revenue of a major contract in the United Kingdom and an unfavorable economic environment in Brazil.
TRENDS BY MAJOR REGION
On a like-for-like basis, North America - now by far the Group's largest region with 31% of revenues - grew by 5.2%, with a positive momentum in Financial Services as well as in CPRDT (Consumer Products, Retail, Distribution and Transportation), and a slowdown in energy and utilities. The UK and Ireland region continues to experience a reduction in revenues (-11.0%) due to the evolution of a major contract mentioned above. France is more dynamic than in H1 with a growth of 2.0% driven by a pick-up in projects business. Benelux, meanwhile, remained virtually stable (+ 0.6%). In the Rest of Europe, growth was 10.4%, accelerating compared to H1, with strength notably in Nordic countries and Germany. In Asia-Pacific and Latin America, growth was limited to 3.7% in Q3 due to the economic environment in Brazil, Asia Pacific, however, maintains a double digit growth.
As of September 30, 2015 Group employees totaled 178,045 people. Offshore leverage, with over 96,000 employees in the Global Production Center network, stands at 54% of the total workforce.
New orders recorded in Q3 2015 amounted to €2,499 million. This represents a 20% increase at constant exchange rates compared to the level recorded in the same period of 2014.
Thanks to the strong performance in Q3, the Group confirms its financial objectives for 2015. The group forecasts 2015 revenue growth of 12%, at current Group structure and exchange rates, and an operating margin rate of 10.3%. Organic free cash flow is expected to exceed €600 million.
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A global leader in consulting, technology services and digital transformation, Capgemini is at the forefront of innovation to address the entire breadth of clients’ opportunities in the evolving world of cloud, digital and platforms. Building on its strong 50-year heritage and deep industry-specific expertise, Capgemini enables organizations to realize their business ambitions through an array of services from strategy to operations. Capgemini is driven by the conviction that the business value of technology comes from and through people. It is a multicultural company of 200,000 team members in over 40 countries. The Group reported 2017 global revenues of EUR 12.8 billion.
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