European IT firm Capgemini posted consolidated revenues of €3,547 million in the first quarter of 2020, up 2.3 percent on a constant currency basis, from the same period last year.
Organic growth (i.e. growth excluding the impact of currency fluctuations) was 2.0 percent. Digital and Cloud revenues continued to grow rapidly (approximately 20 percent at constant exchange rates) to account for over 50 percent of Group revenues.
Aiman Ezzat, the incoming CEO said, "In the unprecedented situation that we are currently navigating, the Group’s priority is the health and safety of our employees and the continuity of the services Capgemini provides to its clients. Above all, we would like to thank all Group team members for their strong mobilization. Thanks to their commitment and the swift implementation of our business continuity plan with, in particular, close to 95 percent of employees working from home, we were immediately able to offer our clients services tailored not only to their short-term challenges but also to their future environment. This is reflected in the quality of our first quarter growth performance."
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Ezzat added that Q2CY20 (quarter ending June 2020) will continue to be challenging but a gradual recovery would be possible in the two quarters that follow. "In this new environment, the Group expects the 2nd quarter to be challenging, before a gradual recovery in the 3rd and 4th quarters. It can confidently rely on the higher resilience of its business model and sustained demand for digital and cloud services, as innovative technology becomes even more prevalent in our world," he said
However, the company added that due to the level of uncertainty on the speed of demand recovery, it was not in a position to provide an outlook for the full year. Beyond the strength of its financial structure, the Group believes it has improved the resilience of its operations since the financial crisis of 2009.
"Capgemini is confident on its ability to demonstrate its resilience thanks to : an active management of the cost base, using all available levers; a flexible operating model, based on an agile and decentralized delivery model and a large offshore base; a diversified client base, both by sector and region, which contributes on average to 95 percent of the following year’s revenues; a portfolio of offers well suited to the current context, with sustained digital and cloud demand and dedicated offers to help its customers cope with this crisis," it explained in its release.
First Published: Apr 28, 2020 1:50 PM IST
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