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Organic revenue growth of 2.8% and 5.7% at current Group structure and exchange rates in Q3 2014

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Pune (Nov. 6, 2014): Capgemini Group reports Q3 2014 revenues of €2,591 million, up 2.8% on Q3 2013 on a like-for-like basis (i.e. at constant Group structure and exchange rates). This performance is all the more significant as the scheduled reduction of IT hardware sales to a major South American client weighed approximately one point on Group growth for the quarter. Revenues grew 5.7% at current Group structure and exchange rates. The difference between these two rates is due to favorable movements in certain currencies used by the Group and the consolidation of Euriware, the French company that was acquired in May. 

Q3 2014
Revenues

Q3 2014
Revenues

Change

Q3 2014/
Q3 2013

€2,591 million

€2,451 million

At constant Group structure and exchange rates

+2.8%

At current Group structure and exchange rates

+5.7%

 At constant Group structure and exchange rate, growth in revenues breaks down as follows:

·         By business, Consulting Services (4% of Group revenues) contracted by 3.0%.  Local Professional Services (Sogeti) (14% of Group revenues) remained stable, with good growth in North America and the Nordic countries offset by a downturn in France. Application Services (55% of Group revenues) grew 5.1%, driven by the dynamism of project activities in North America and the United Kingdom and by application management activities. Other Managed Services (27% of Group revenues) reported limited growth (+0.6% in Q3) but progressed 4.0% excluding the impact of the reduction of hardware sales referred to in the introduction.

·         By region, North America reported a very strong performance (+11.9%), particularly in financial services, energy, and utilities, as well as in retail and consumer goods sector. The United Kingdom and Ireland region enjoyed revenue growth of 4.0%. France reported a slight downturn in activity (-0.5%), but grew 9.0% at current Group structure and exchange rates thanks to the consolidation of Euriware. Benelux reported a slight fall of 0.8%, marking the start of a stabilization. The rest of Europe is now growing (2.9%), underpinned by the growth of Italy, Germany, Spain and the Nordic countries. The Asia-Pacific and Latin America region contracted 7.2%; Asia-Pacific grew nearly 10% over the quarter and Latin America should return to double-digit growth from Q4.

Bookings totaled €1,987 million in Q3 2014, up very slightly compared to the same period in 2013.

At September 30, 2014, the total headcount of the Group was 141,045, up 7.3% on December 31, 2013. Offshore employees totaled 64,616 and represented 45.8% of the total headcount. The Indian headcount increased 17% over one year.

The strong Q3 performance reinforces the Group’s annual guidance for 2014 of organic revenue growth of 2% to 4% and an operating margin rate between 8.8% and 9.0%. Organic free cash flow is expected to exceed €500 million.

For Paul Hermelin, Chairman and CEO of Capgemini Group: “In spite of an economic environment which remains mediocre in Europe, Capgemini reports strong performance. Thanks to our global geographic mix, we are able to capitalize on the excellent growth in North America (+11.9%). Furthermore, we continue to combine innovation and competiveness in order to offer our clients a service portfolio tailored to their expectations.” 

Appendix

Utilization rates

 

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Consulting Services

62%

69%

64%

67%

65%

69%

64%

Local Professional Services (Sogeti)

80%

82%

83%

82%

81%

82%

82%

Application Services

80%

81%

82%

82%

81%

82%

82%

 Revenue by business

 

% revenues Q3 2013

% revenues Q3 2014

Q3 2014 / Q3 2013*

Consulting Services

4.1%

3.8%

-3.0%

Local Professional Services (Sogeti)

14.6%

14.5%

0.0%

Application Services

55.5%

55.0%

5.1%

Other Managed Services

25.8%

26.7%

0.6%

* At constant Group structure and exchange rate

Revenue by geographic area

In millions of euros

Q1 2013

Q2 2013

Q3 2013

Q1 2014

Q2 2014

Q3 2014

Q3 2014 / Q3 2013

 

 

 

 

 

 

 

Published

Organic

North America

501

530

516

495

540

572

10.9%

11.9%

United Kingdom and Ireland

510

500

482

539

542

540

12.0%

4.0%

France

551

541

514

556

587

560

9.0%

-0.5%

Benelux

273

268

258

265

264

256

-0.8%

-0.8%

Rest of Europe

469

473

418

466

458

425

1.4%

2.9%

Asia-Pacific and Latin America

195

222

263

182

210

238

-9.5%

-7.2%

Total

2,499

2,534

2,451

2,503

2,601

2,591

5.7%

2.8%

 Year to Date Revenue

In millions of euros

YTD 2013

YTD 2014

YTD 2014 / YTD 2013

 

 

 

Published

Organic

North America

1,547

1,607

3.9%

8.0%

United Kingdom and Ireland

1,492

1,621

8.7%

3.5%

France

1,606

1,703

6.1%

0.8%

Benelux

799

785

-1.6%

-1.6%

Rest of Europe

1,360

1,348

-1.0%

0.8%

Asia-Pacific and Latin America

680

631

-7.2%

2.5%

Total

7,484

7,695

2.8%

2.7%

 Key events of Q3 2014

·         Signature of a major managed services contract with FrieslandCampina in the agri-food sector in the Netherlands.
·         Extension of a finance and accounting BPO contract with a leading European group in the healthcare sector.
·         Signature of an ERP roll-out contract with the Australian company, Westfarmers.
·         Signature of several SAP business suite on HANA® deployment contracts in the United States.
·         Certification by SAP HANA® of two key applications for retail commerce.
·         Signature of a strategic partnership agreement with VMware to deliver enterprise mobility management solutions powered by AirWatch.
·         Launch of three Engineered Systems service offerings developed in partnership with Oracle.
·         Upgrade of Capgemini’s rating to BBB+ by Standard & Poor’s.
·         Capgemini ranked by Gartner among global leaders for SAP implementation services.