Fuente: www.consultant-news.com Fecha: 23.02.2010
Capgemini sees annual revenues down 5.5%
Capgemini reported total revenues for the year ended December 31, 2009 of € 8.37 billion, down 3.9% on 2008 published revenues. On a like-for-like basis (constant Group structure and exchange rates) revenues fell 5.5% on last year.
Bookings totaled € 9.28 billion during the year, down 2% on comparable figures for last year. Outsourcing Services – and particularly BPO (Business Process Outsourcing) – proved particularly dynamic, with a 14% surge in bookings. Bookings in the other businesses, more sensitive to the economic context, remained at acceptable levels, with an average book-to-bill ratio of 1.08.
At € 595 million, operating margin represents 7.1% of 2009 consolidated revenues, a limited fall on last year and in line with the announced objective. Outsourcing Services even reported a further improvement in profitability to 7.2%, representing an increase of 1.8 points.
Net other operating expense is € 262 million and mainly comprises restructuring costs (€ 213 million) necessitated by the drop in demand. As a result, operating profit is only € 333 million.
The net financial expense is € 93 million and was heavily affected by the fall in short-term interest rates, which led to a marked decrease in returns on cash investments. After the income tax expense of € 61 million, Group profit for the year is € 178 million.
In 2009, Capgemini also launched two major initiatives to prepare for the market recovery, while strengthening its productivity. Firstly, the creation of five global service offerings in highly promising market segments should enable the Group to increase its related bookings by € 800 million in 2010: data management (Business Information Management) and applications development and maintenance (Application Lifecycle Services) launched in 2009; applications testing (Testing), smart meters and networks (Smart Energy Services), and assisting clients in the virtualization and cloud computing era (Infostructure Transformation Services) to be set up before the end of March. In addition, Capgemini launched a two-year plan aimed at optimizing its productivity and further improving its competitiveness.
Outlook for 2010
Capgemini said the IT services market appears to be stabilizing in the first half of 2010. The Group has, in particular, noted a significant increase in the appetite of clients for larger projects and, in several geographical areas, a turnaround in the attrition rate, which generally reflects an upturn in activity. As comparative figures for the first half of 2009 remain high, Capgemini will record a further fall in revenues in the first half of 2010, before a return to growth in the second half of the year. For 2010 as a whole, the Group forecasts a slight contraction of between 2 and 4% on a like-for-like basis, with an operating margin rate of between 6 and 6.5%.
Operations by major region:
• France – which retains its number-one spot among the Group’s regions – reported a 6.1% drop in revenues like-for-like, although it is interesting to note the slight rise enjoyed by Technology Services. The operating margin rate of 6.2% resisted well, reporting a decrease of less than one point;
• The United Kingdom and Ireland, the only major region to report an increase in revenues like-for-like (+7.5%), benefited from the importance of Outsourcing Services and a solid presence in the public sector. This region improved its profitability to become the most profitable of the major regions (8.9%);
• Revenues in North America – the epicenter of the financial crisis - reported a slump of 8.5% like-for-like, but only 4.7% on published figures, due to the appreciation of the US dollar. The resistance of the operating margin was remarkable, reaching 4.9%, down only 0.6 points on 2008;
• The crisis was particular acute in Benelux, where revenues plummeted 12.9% like-for-like. While this region suffered a marked fall in profitability, it nonetheless maintained an operating margin rate of 8.7% for the year and even a double-digit rate in the second half;
• The other regions reported a fall in revenues of 7.6% on average, like-for-like (although Italy and the Asia-Pacific region enjoyed remarkable growth). These regions reported an average operating margin rate of 10.4%, spurred by the profitability of the Asia-Pacific region, the Group’s leading resource center.
Operations by business:
• Outsourcing Services, which accounted for 36.4% of Group revenues, played its stabilizing role to the full. It reported growth of 0.3% like-for-like, despite the scheduled decrease in revenues generated by a major North-American contract. The operating margin rate improved to 7.2%;
• Technology Services reported a 7.4% fall in revenues, like-for-like and an operating margin rate down on 2008 at 6.9%;
• Sogeti, whose activities are exposed to economic cycles by their very nature, reported an 8.3% drop in revenues, like-for-like, but maintained a satisfactory operating margin level (9.7%), thanks to good resource management and price resistance;
• Consulting Services, which are also particularly sensitive to the economic environment, reported a decrease of 14.7%, like-for-like; thanks to tight control over operating items, it managed to maintain a quite remarkable operating margin rate of 11.4%, down only 1.4 points on 2008.
The total headcount is 90,516 at December 31, 2009, compared to 91,621 at end-2008. Primarily concentrated in India, but also in Poland, Latin America, China, Morocco and Vietnam, offshore employees represented 31% of the total Group headcount (i.e. 28,000 employees) at December 31, 2009.