Revenue increase by 10.5% in Q1 2015 supported by a strong growth in North America
Paris, April 27, 2015 – 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.”
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%.
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.
Bookings during first quarter of 2015 totaled €2 680 million, an increase of 10.3% on 2013 on a like-for-like basis.
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.
 SMAC definition now also includes Digital Customer Experience. Q1 14 SMAC revenues with the new definition represented 14% of Group revenues instead of 12% under the previous definition.
Evolution in revenue by region:
Evolution in revenue by business (at constant Group structure and exchange rates):
Utilization rates (%):
Q1 2015 major events: