Capgemini Se Ord (CAPMF) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and thank you for joining us for this Q1 2025 revenue call. I'll be joined today by our CFO, Nivi Bagat. So in Q1, the group delivered a performance slightly better than our initial expectation. This comes despite the macro and geopolitical environment that remains challenging. The group generated revenues of $5,553,000,000 representing a year-on-year revenue decline limited to minus 0.4% at constant exchange rate, which represents a 70 bps improvement on the Q4 rate. The contribution from M&A in the quarter is around 1 point. Bookings were up 2.8% at constant exchange rate and reached 5,884,000,000, which represents a strong book to build for a Q1 of 1.06. Looking at the trends we observed in this first quarter, they are consistent with our anticipation. From a sector perspective, manufacturing remained weak, with growth rates similar to Q4, and therefore continue to weigh on the group growth. Financial services and public sector on the other side maintained a good momentum, enjoyed in Q4. The improvement compared to Q4 primarily came from the energy, utilities, TMT, and services sector. Now, from a geo perspective, North America is back to slight growth in Q1 at plus 0.8%. Growth rates in the UK and Ireland, Asia Pacific, and Latin America are also accelerating, and that's partly offset by the deceleration observed in the rest of Europe. Finally, France has now passed the trough. And from a business perspective, strategy and transformation maintain positive growth rates. Application and technology returned to growth this quarter, while operational engineering decelerated to minus 2.6%. When you look at the clients, they are really focused on transformation programs aimed at improving agility, cost, and efficiency of the operation at the expense of what...