Capgemini revenue grows thanks to the acquisition of Altran

Capgemini has posted 12 percent growth in revenue to €15.848 billion in 2020, thanks to the acquisition of Altran Technologies.
Capgemini IT services for digital transformationCapgemini completed the acquisition of Altran Technologies, consolidated from April 1, 2020.

In 2020, Capgemini invested €2.999 billion in growth transactions. This primarily reflects outflows in 2020 to acquire Altran.

Capgemini said bookings increased 13 percent to €16.892 billion in 2020. At 107 percent, the book-to-bill ratio reflects the strength of commercial activity in the context of the pandemic. In Q4, bookings increased +15 percent at constant exchange rates to €5.155 billion. The Q4 book-to-bill ratio of 121 percent reflects a promising level of client demand for the coming quarters.

The operating margin increased by 8 percent in value to €1,879 million, representing 11.9 percent of revenues.

Net profit grew 12 percent to €957 million.

Capgemini in Q4 2020

The United Kingdom and Ireland (10 percent of Group revenues in Q4 2020) reported a return to organic growth year-on-year.

The North America region (29 percent of Group revenues) continued its recovery, with now only a modest contraction in activity.

France (23 percent of Group revenues) reported the largest organic contraction, but continued the improvement begun in the previous quarter.

The Rest of Europe region (31 percent of Group revenues) remained virtually stable.

The Asia-Pacific and Latin America region (7 percent of Group revenues) reported further robust organic growth, albeit down on Q3.

Capgemini said most sectors recorded a further sequential improvement in activity in Q4. Growth in Financial Services (24 percent of Group revenues in Q4 2020) accelerated on Q3.

The TMT sector (Telecom, Media and Technology, 13 percent of Group revenues) also continued to recover, posting slightly positive growth in Q4, while the Public Sector (13 percent of Group revenue) again grew at a sustained pace.

The Q4 decline reported by the Consumer Goods (12 percent of Group revenues) and Energy & Utilities (10 percent of Group revenues) sectors was an improvement on the previous two quarters.

The Manufacturing (22 percent of Group revenues) and Services (6 percent of Group revenues, including transportation and tourism) sectors continued to contract in Q4.

At December 31, 2020, the Group’s total headcount stood at 269,800, up +23 percent year-on-year, mainly following the integration of Altran team members. Over 145,000 employees work in offshore centers, some 54 percent of the total headcount.

After a slight dip in employee numbers in the second and third quarters, Capgemini returned to positive net hiring in Q4 2020.