FY constant currency growth of +13.7% and organic growth of -3.2% and Q4 constant currency growth of +20.8% and organic growth* of -2.4%
Capgemini therefore reported revenues of €15,848 million in 2020, up 12.2% on 2019 published figures. Constant currency growth* was 13.7%, at the upper end of the +12.5% to +14.0% target range. Organic growth* (i.e. excluding the impact of currency fluctuations and changes in Group scope) reported a measured contraction of -3.2% for the full year.
The clear improvement in the Group’s activities from Q3 2020 continued in the fourth quarter in the Group’s main sectors and regions, both for constant currency (+20.8% in Q4) and organic growth (-2.4% in Q4).
This performance demonstrates how the sector and geographic diversification of Capgemini’s client base, combined with the high quality of the offer portfolio developed in recent years, have considerably strengthened the resilience of the Group’s activities. Digital and Cloud services remained dynamic with constant currency growth of around 15% for the full year, in a crisis context that encouraged clients to prioritize critical digital transformation projects. Digital and Cloud services thus represented around 65% of Group activities in Q4 2020.
Bookings totaled €16,892 million in 2020, an increase of +13% at constant exchange rates year-on-year. At 107%, the book-to-bill ratio reflects the strength of commercial activity in the context of the pandemic. In Q4, bookings increased +15% at constant exchange rates to €5,155 million. The Q4 book-to-bill ratio of 121% reflects a promising level of client demand for the coming quarters.
Q4 revenues total €4,259 million, up +20.8% at constant exchange rates year-on-year, primarily reflecting the integration of Altran in the consolidation scope.
In line with its expectations, Capgemini reports a further sequential increase in the constant currency annual growth rate. Regional trends in constant currency growth rates, as presented in the above table, reflect underlying organic momentum (i.e. at constant scope and exchange rates).
Revenues in North America grew by +7.9% at constant exchange rates. This increase was driven by Altran’s contribution to revenues, mainly visible in the TMT sector. Financial Services enjoyed strong momentum at the year end and reported organic growth for the full year. The operating margin rate improved further to 14.8%, compared with 13.9% in 2019.
The United Kingdom and Ireland region reported +6.7% constant currency growth in revenues, supported by Altran’s consolidation (mainly in the Manufacturing and TMT sectors) and robust Public Sector momentum throughout the year on an organic basis. The operating margin increased to 15.5% from 15.2% a year earlier.
France reported revenue growth of +14.2% at constant exchange rates for the period, with the Manufacturing, TMT and Energy & Utilities sectors significantly enhanced by the consolidation of Altran revenues. On a like-for-like basis, the Manufacturing sector was most heavily affected by the activity slowdown in the past year, while the Public Sector maintained robust growth throughout the year. Within the Group, France was the hardest hit by the pandemic, notably due to an unfavorable mix of sectors and business lines. Both revenues at constant scope and operating margin contracted visibly, with the latter declining 3.4 points year-on-year to 8.7%.
The Rest of Europe region grew +23.7% at constant exchange rates, including Altran revenues. Activity remained almost stable in 2020 on an organic basis, supported by the buoyant Public Sector and TMT sector. The region reported a slightly lower operating margin of 11.4%, compared with 11.8% a year earlier.
Finally, momentum remained strong in the Asia-Pacific and Latin America region, with revenues increasing +12.2% at constant exchange rates. This performance is particularly noteworthy as Altran’s consolidation had a more limited impact in this region. Organic growth was again sustained, boosted particularly by Financial Services and, to a lesser extent, the Services and TMT sectors. The operating margin rate increased significantly to 13.0%, from 11.2% in 2019.
Maya Grinberg is a careers Reporter for Tech News vision make it. Prior to joining Tech News Vision, she worked as a fiction stories and a freelancer for magazine, where she eventually worked her way up to careers editor. During this time, she created daily content for own website and worked with the research team to create content. she developed some own Newswebsite.