Capgemini sees double-digit 2020 revenue growth, second-half recovery By Reuters

Capgemini sees double-digit 2020 revenue growth, second-half recovery By Reuters


© Reuters. The logo of Capgemini is pictured during the Viva Tech start-up and technology summit in Paris

(Reuters) – French consulting and IT services provider Capgemini (PA:) said on Thursday it expected double-digit revenue growth in 2020 driven by a gradual second-half recovery, crediting diversification for its resilience during the coronavirus crisis.

The company said it planned to reach revenue growth at constant exchange rates of between 12.5% and 14.0% this year.

“We set objectives for 2020 that illustrate the resilience of our revenues, profitability and organic free cash

flow,” Chief Executive Officer Aiman Ezzat said in a statement.

Capgemini said the sector and geographic diversification of the client base developed in recent years have reinforced the resilience of its business.

The group, however, warned that a sharp deterioration in health conditions or the economic environment in the coming months could undermine the attainment of its objectives.

In July, Ezzat said the French group expected “a gradual recovery” in the third and fourth quarter, but offered no detailed targets.

Capgemini, which operates in nearly 50 countries, offers its services to industries ranging from telecom to aerospace. In June 2019, it took over a smaller rival Altran to respond to customers’ needs to outsource engineers as well as research and development teams.

Capgemini also said it expected an operating margin reduction of 0.6 to 0.9 points compared to the 2019 rate of 12.3%. It said its net profit declined by 20% to 311 million euros ($367.20 million) in the first half of the year and confirmed an organic revenue decline of 3.4% reported in preliminary figures in July.

Capgemini rival Accenture (N:) narrowed its fiscal 2020 revenue growth forecast to between 3.5% and 4.5% amid the coronavirus-fueled economic slump.

(This story removes extraneous words in paragraph 8.)

($1 = 0.8470 euros)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *


About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.


CONTACT US

CALL US ANYTIME