Capgemini revenue grows thanks to €5.4 bn acquisition of Altran

Capgemini has revealed that its revenue rose 8.2 percent — with the acquisition of Altran for €5.4 billion — to €7.581 billion in the first half of 2020.
Capgemini employees
The consolidation of Altran had a material impact on Q2 revenues.

Aiman Ezzat, chief executive officer; and Rosemary Stark, global sales officer are mainly responsible for Capgemini’s business performance.

Bookings grew 10.3 percent to €7,841 million in the first six months of 2020. At 103 percent, the book-to-bill ratio exceeds the 2019 ratio for the same period, demonstrating the strength of commercial activity in the context of the pandemic.

The operating margin increased by 3 percent in value to €818 million, representing 10.8 percent of revenues.

Q2 revenues increased 13.4 percent to €4,034 million.

Group organic growth fell 7.7 percent in Q2, reflecting the impact of the pandemic on the activities of the new combined entity. This comprises a decrease of 6.9 percent for Capgemini’s legacy scope and of 11.6 percent for Altran’s scope.

Revenues in North America grew 4.2 percent driven by Altran’s contribution to revenues, mainly in the TMT sector.

The United Kingdom and Ireland region grew 0.6 percent supported by Altran’s contribution mainly in the Manufacturing and TMT sectors.

France reported revenue growth of 7.6 percent following the consolidation of Altran revenues particularly in Manufacturing, TMT and the Energy & Utilities sectors.

The Rest of Europe region grew 15.1 percent, including Altran revenues.

Capgemini revenue in Asia-Pacific and Latin America region increased 11.4 percent though Altran acquisition had a more limited impact in this region.

Capgemini Group’s business mix changed in Q2 2020 with the integration of Altran which primarily delivers Engineering services.

While Strategy & Transformation consulting services continued to generate 7 percent of Group’s total revenues in Q2, Operations & Engineering services now account for 33 percent of Group business with the addition of Altran’s engineering activities. Applications & Technology services remain the Group’s core business, but now only represent 60 percent of total business.

Capgemini Group’s headcount stood at 265,100 (+22.3 percent) at June 30, 2020, due to the integration of 50,000 Altran team members. Nearly 139,500 employees work in offshore centers, i.e. 53 percent of the total headcount, Capgemini said.

Capgemini Group’s employee base fell 2 percent compared to December 2019, on a like-for-like basis. Altran added close to 50,000 people who came with an offshore mix in the low 30s. The company’s attrition stands at 17.4 percent as of June 2020 on the last 12 months basis, down by five points versus June last year.