Yesterday morning Capgemini announced revenues for the first quarter (Q1) of 2016.
Paul Hermelin, Chairman and CEO of the Capgemini Group, described the Q1 2016 revenue growth as “a dynamic start to the year”. We continued on our upward trajectory, posting revenues of €3.092 million (£2.396 million) which are 13.9% up on last year and were boosted by a strong performance by Digital and Cloud. Organic growth, largely excluding IGATE and other acquisitions, showed as 2.9%, and bookings of €3.128 million (£2.147 million) gave a growth of 17.6% and a positive book to bill ratio, which is again a key growth indicator.
- €3,092M revenue; +13.9% constant currency growth YoY
- Strong traction for innovative offers: 28% Digital & Cloud revenue growth YoY
- Positive market dynamic: bookings growth +17.6% YoY at constant rates
- Delivery of IGATE synergies is ahead on schedule
- Offshore leverage at 55%, reaching 100,000 workforce in global production centres
You can read the full press release here: Capgemini starts 2016 with good momentum. You can also access the ‘2016 Q1 Revenues’ presentation to analysts. Group CFO Aiman Ezzat gives highlights of our Q1 2016 financial results in this video.
From the press release, the United Kingdom & Ireland region, boosted by a buoyant private sector with double-digit organic growth, reported an 8.1% increase in revenues at constant exchange rates.
I spoke to UK CFO Tony Deans about what our Q1 2016 results mean for the UK & Ireland:
“At the call with analysts, the UK and Ireland was positively highlighted on a number of fronts, from the revenue growth of 8.1%, double digit growth in the UK private sector, the fact that 60% of our business is now delivered from global production centres and how the UK Consulting Services business has contributed significantly to the excellent growth of 7.4% of the overall SBU.
“The UK and Ireland remains a key influencer in the Group, with 17% of total revenues. I was interested in how many questions the analysts raised around the UK business, clearly trying to get some sort of indication as to how the wider IT sector is performing in the UK.
“Lastly, we are all part of a Group of 182,908 which is 2,269 up on December 2015, an increase of 1.2%, with over 100,000 in global production centres (55% of total).
“Overall, this is a promising start to 2016 which should give us all a great deal of confidence that we will deliver our objectives in the UK & Ireland.”