CAPGEMINI (Paris:CAP):
The decline in the economic environment in the third quarter
fuelled a sharp reduction in corporate IT spending. Against this
challenging backdrop, the Capgemini Group reported consolidated
revenues of EUR1,946 million, down 9.0% on a like-for-like basis
versus third-quarter 2008 (constant Group structure and exchange
rates).
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Q3 2009revenues Change Q3 2008revenues Q3 2009 vs. Q3 2008
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EUR1,946m reported EUR2,098m -7.3%
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like-for-like -9.0%
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The following like-for-like changes can be observed versus
third-quarter 2008:
-- Business segments: Outsourcing
Services fulfilled its role as a stabilizing force despite
posting a
slight 2.7% decline in revenues due to the expected - and
announced -
fall in business under a major contract in North America.
Revenues for
the Group's other three business segments retreated 12.5% on
average,
with those activities most vulnerable to the economic cycle
(Consulting Services and Local Professional Services) recording
the
largest decline.
-- Regions: UK and Ireland
continued to gain ground, delivering a 1.5% increase in
revenues.
Although revenues for North America were down 7.3% on the
same
year-ago period, this was a better performance than in the
three
months to June 30, 2009. The Group's other regions saw
revenues
contract 13.3% on average, with France posting a fall of
9.9%.
Bookings in the three months to September 30, 2009 represented
EUR1,981 million. Bookings advanced 7% for Outsourcing Services
compared with third-quarter 2008. In the Group's other three
businesses (Consulting Services, Technology Services and Local
Professional Services), the book-to-bill ratio remained above
1.
Like-for-like, Capgemini's revenues for fourth-quarter 2009
should experience a similar decline to that recorded in the three
months to September 30. Thanks to its extremely tight rein on
costs, the Group is able to confirm its operating margin guidance
of around 7% for full-year 2009.
Although there are signs that activity is stabilizing and even
picking up in some market segments, benefits are not expected to
filter through immediately. To leverage the upturn, Capgemini has
decided to launch five comprehensive service offerings between now
and March 2010. The offerings focus on high-growth markets such as
those targeted by Business Information Management (BIM), the
services package just announced.