Revenue Increase by 10.5% in Q1 2015 Supported by a Strong Growth in North America

| Financial news
Paris – The Capgemini Group generated consolidated revenues of €2,764 million in the first quarter of 2015, up 10.5% at current Group structure and exchange rates compared to the first quarter of 2014. At constant Group structure and exchange rates, the growth of revenues is up 1.5%*.

For Paul Hermelin, Chairman and Chief Executive Officer of Capgemini Group: "In a slightly improved economic environment in Europe and despite the anticipated revenue decline generated by a major contract of the Group, Capgemini achieved a solid performance in the first quarter 2015.
Capgemini has taken advantage of its excellent performance in North America, where its revenue grew 11.7% on a like-for-like basis and 33.8% at current Group structure and exchange rates. Meanwhile, the regions of Asia Pacific and Latin America reported organic growth of 22.9%.
 
Capgemini Consulting has successfully achieved its turnaround by focusing on digital transformation. The business recorded a rebound in activity of 3.1% in Q1 15 after several consecutive quarters of decline.
 
Finally, we report a strong progression of 10.3% in bookings, confirming the alignment of our portfolio to customer demand. SMAC revenue grew by 22% YoY and represents 17% of Q1 revenues1.
 
Innovation and industrialization remain at the heart of the Group's priorities, they represent the two improvement levers to continually provide innovative and quality services to our customers."

 

In million of euros Q1
2014
Q1
2015
Change
at constant Group structure and exchange rates
Change
at current Group structure and exchange 
Revenues 2 503 2 764 +1.5% +10.5%
(*)The difference between these two rates is mainly due to the integration of Euriware and the evolution of the U.S. dollar and the British pound sterling
 


OPERATIONS BY BUSINESS

On a like-for-like basis, Consulting services (4% of Group revenues) reported a revenue growth of 3.1%. Local professional services (Sogeti) (15% of Group revenues) are stable (+0.5%) and Application Services (57% of Group revenues) reported growth of 4.6%. Other managed services (24% of Group revenues) contracted by 5.1% due to the scheduled modification of the contract mentioned above.
 

OPERATIONS BY MAJOR REGION

On a like-for-like basis, North America reported a revenue growth of 11.7%. The United Kingdom and Ireland revenue contracted by 16.1%. France is a little more dynamic than during the second half of 2014 with an increase in revenues of 1.2%. Benelux is quasi stable with a progression of +0.9%. In the “Rest of Europe”, the growth is a little more buoyant, reported revenues were up 3.0%. Finally, the Asia-Pacific and Latin America region reported the fastest growth with +22.9%.
 

HEADCOUNT

On March 31, 2015, the total headcount of the Group was 147,016 employees. Offshore employees totaled 69,965, representing 48% of the total Group headcount. Furthermore, in April 2015 the Group crossed the 60,000 employees milestone in India.
 

NEW ORDERS

Bookings during first quarter of 2015 totaled €2 680 million, an increase of 10.3% on 2013 on a like-for-like basis.
 

2015 OUTLOOK

Based on the first quarter results, the Group raises its growth objectives for 2015: Capgemini forecasts a revenue growth, at current rates and perimeter, of at least 5% (although it had communicated a growth objective of 3% to 5% in February). Furthermore, the Group confirms that it is targeting an operating margin rate between 9.5% and 9.8%. Organic free cash flow is expected to exceed €600 million.

Appendix

Evolution in revenue by region:

   
Current
Current Organic
Year-on-year % Year-on-year %
  Q1 Q1 Q1 2015 / Q1 2015 /
2014 2015 Q1 2014 Q1 2014
North America 495 662 33.8% 11.7%
UK and Ireland 539 504 -6.6% -16.1%
France 556 620 11.5% 1.2%
Benelux 265 267 0.9% 0.9%
Rest of Europe 466 471 1.2% 3.0%
Asia Pacific & Latin America 182 240 31.6% 22.9%
Total 2 503 2 764 10.5% 1.5%
 
 
Evolution in revenue by business (at constant Group structure and exchange rates):
 
  % of revenues
Q1 2014
% of revenues
 Q1 2015
Q1 2015 /
Q1 2014
Consulting services 4% 4% 3.1%
Local Professional Services (Sogeti) 15% 15% 0.5%
Application services 56% 57% 4.6%
Other managed services 25% 24% -5.1%
 
 
Utilization rates (%):
 
  Q1
2014
Q2
2014
Q3
2014
Q4
2014
Q1
2015
Consulting services 65% 69% 64% 70% 71%
Local Professional Services (Sogeti) 81% 82% 82% 82% 81%
Application services 81% 82% 82% 82% 82%

Q1 2015 major events:

  • Capgemini’s third Employee Share Ownership Plan 
  • Signature of a major contract with Office Depot Inc. to provide Business Process Outsourcing, Application Maintenance and Testing Services Worldwide
  • Launch of the Cybersecurity Global Service Line 
  • Evolution of the Business Information Management Global Service Line (GSL) into a global practice focused on ‘Insights & Data’