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.”