The Capgemini Group generated consolidated revenues of €2,503 million in the first quarter of 2014, up 2.3% at constant Group structure and exchange rates compared to the first quarter of 2013. At current Group structure and exchange rates, revenues were stable (+0.2%)*.
| Q1 2014 revenues | Q1 2013 revenues | Change | Q1 2014/
Q1 2013 |
| €2,503 million | €2,499 million | At constant Group structure and exchange rates | + 2.3% |
| At current Group structure and exchange rates | + 0.2 % |
(*)The difference between these two rates is mainly due to the unfavorable evolution of the U.S. dollar and the Brazilian real The change in revenues at
constant Group structure and exchange rates breaks down as follows:
- by business, Group growth is driven by Outsourcing Services (+3.7%) and by Technology Services (+2.5%), together they represent 80% of Capgemini’s revenues. Conversely, the most cyclical businesses continue to be affected by a weak demand environment in Continental Europe: Revenues for Local Professional Services (Sogeti) are stable (-0.1%), while Consulting Services decline is limited to 2.6%.
- by region, it is again the Asia-Pacific and Latin America region that reported the fastest growth (+11.7%). The recovery of activity in North America is confirmed with a growth rate of 4.1%. The United Kingdom and Ireland region rose 2.7% despite the continuing decline in the public sector. France confirmed a moderate growth of 1.0%. With the exception of Benelux, which posted a decline (-2.9%) due to the weak market, the rest of Europe grew slightly (+1.2%).
Bookings amounted to €2,224 million in the first quarter of 2014, up 5% compared to the same period in 2013. The combined book-to-bill ratio of Consulting Services, Technology Services and Local Professional Services stood at 1.05.
As of March 31, 2014, the total headcount of the Group was 134,000. Offshore penetration increased by 4 points year on year to 45%, representing more than 60,000 employees.
In addition, in April, the Group crossed the threshold of 50,000 employees in India. The first European IT Services company to have developed massively in this country, Capgemini has a tremendous expertise and an undeniable asset to gain market share.
Based on these results, the Group confirms its objectives for 2014: an 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: “We began 2014 with a stronger momentum than 2013. It is by playing our two strengths – competitiveness and innovation – that we best meet our clients’ needs. Competitiveness, supported by the power of our offshore platforms. Innovation, through the constant development of new offerings around cloud, big data and digital to enable our clients’ business transformation.”
Appendix
Change in revenue by region: | | | | | Current | Organic |
| | Current | Sequential
% | Year-on-year % | Sequential
% | Year-on-year % |
| | Q1 2013 | Q4 2013 | Q1 2014 | Q1 14 /
Q4 13 | Q1 14 /
Q1 13 | Q1 14 /
Q4 13 | Q1 14 /
Q1 13 |
| North America | 501 | 527 | 495 | -5.9 | -1.2 | -4.4 | 4.1 |
| UK and Ireland | 510 | 512 | 539 | 5.3 | 5.7 | 3.8 | 2.7 |
| France | 551 | 584 | 556 | -4.7 | 1.0 | -4.7 | 1.0 |
| Benelux | 273 | 282 | 265 | -6.2 | -2.9 | -6.2 | -2.9 |
| Rest of Europe | 469 | 478 | 466 | -2.7 | -1.0 | -2.5 | 1.2 |
| Asia Pacific & Latin America | 195 | 224 | 182 | -19.0 | -6.4 | -15.4 | 11.7 |
| Total | 2499 | 2607 | 2503 | -4.0 | 0.2 | -3.6 | 2.3 |
Change in revenue by business (at constant Group structure and exchange rates): | | % of revenues
Q1 2013 | % of revenues
Q1 2014 | Q1 2014 /
Q1 2013 |
| Consulting Services | 4.7 | 4.5 | -2.6 |
| Local Professional Services | 15.4 | 15.6 | -0.1 |
| Technology Services | 40.6 | 39.1 | 2.5 |
| Outsourcing Services | 39.3 | 40.8 | 3.7 |
Utilization rates (%): | | Q1 2013 | Q2
2013 | Q3
2013 | Q4 2013 | Q1 2014 |
| Consulting Services | 62 | 69 | 64 | 67 | 65 |
| Local Professional Services | 80 | 82 | 83 | 82 | 81 |
| Technology Services | 79 | 80 | 81 | 81 | 80 |
Q1 2014 major events:
- 10-year contract with the Norwegian oil group Statoil for the management and transformation of its applications pool;
- 5-year contract with Hema, a Dutch chain of major department stores, Capgemini becoming a privileged partner;
- extension of the strategic partnership with VMWare regarding the creation of solutions dedicated to cloud orchestration;
- launch of the Global Engineering Services offering;
- launch of “Digital Customer Experience” (DCX), a new global service line to help companies with the digitalization of their client interactions.
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