Capgemini reports strong growth in first quarter 2011 revenues

Capgemini Group reports published consolidated revenues for the first quarter 2011 of €2,350 million, up 14.5% on the same quarter in 2010. On a like-for-like basis growth is 6.4%, with the difference between the two rates mainly due to acquisitions performed by the Group throughout 2010, primarily to strengthen its positions in emerging countries (i.e. CPM Braxis in Brazil).

On a like-for-like basis (at constant Group structure and exchange rates), the change on the first quarter 2010 breaks down as follows:

• by business: all cyclical activities (Technology Services, Consulting Services and Local Professional Services) reported sustained growth (+8.0%). Technology Services enjoyed remarkable growth in revenues of 9.5%, primarily driven by the excellent performance of financial services. Local Professional Services reported an increase in revenues of 6.7%, Consulting Services enjoyed a return to growth (+1.2%) and Outsourcing Services increased 3.8%.
• by region: North America enjoyed growth of 10.2%. In France, where over 900 new employees were recruited during the quarter, revenues increased at a rate of 7.4%. Conversely, revenues remained stable in the United Kingdom and Ireland region and the Benelux region, with the first region affected by substantial cuts in public sector purchases and the second region still marked by two years of economic crisis. Overall, the other regions of the Group enjoyed growth of 12.3%. Several countries enjoyed a return to double-digit organic growth and CPM Braxis surged 19%.

Bookings in the first quarter 2011 totaled €2,422 million, up 5.4% on the same period in 2010. Continuing the trend already observed in the fourth quarter 2010, the businesses most sensitive to the economic environment (Consulting Services, Technology Services and Local Professional Services) enjoyed double-digit growth (+12.5%). The book-to-bill ratio for these three businesses was 1.09 for the Group as a whole and 1.38 for North America alone.

Thanks to a recruitment policy balanced between “offshore” and “onshore” employees, nearly 9,000 individuals joined the Group in the first quarter. The Group had a total headcount of 112,127 employees as at March 31, 2011, representing a surge of over 20% in one year, including 41,344 offshore employees (33,510 in India).

In line with this good performance, Capgemini confirms its objective of revenue growth on published figures of between 9 and 10% and an increase in the operating margin rate of between 0.5 and 1 point compared to that realized in 2010, with a gradual improvement in the operating margin rate throughout the fiscal year.

For Paul Hermelin, Chief Executive Officer of Capgemini Group: “Our good performance confirms the return to a steady rate of growth, already witnessed at the end of last year. This growth is primarily driven by the success of our major global service lines which focus on the most promising sectors of the market, as well as a recruitment drive enabling us to adapt our capacities in line with the requirements of our clients. Furthermore, this growth highlights the success of the active targeted acquisitions policy implemented since 2010.”