CapGemini first half profit up by more than 50%
Date: 28-07-2007
Source: Associated Press Newswires
Cap Gemini SA's first half profit doubled helped by its purchase last year of information technology provider Kanbay International Inc., the French computer services company said Friday.
Cap Gemini said net income for the first six months rose to euro168 million (US$229.34 million) from euro71 million a year ago.
Revenue climbed 16 percent to euro4.4 billion (US$6.01 billion) from euro3.8 billion (US$5.19 billion). The technology services division charted a 15 percent growth in sales thanks to the popularity of offshore services like those offered by Kanbay.
Kanbay, which Cap Gemini bought for US$1.25-billion (euro910-million), is a provider of information technology for credit card companies and financial institutions. Based in the U.S. state of Illinois, most of its operations take place in India.
The company is hiring about 1,000 people per month in India and expects to reach from 19,000-20,000 employees in the country by the end of 2007, CEO Paul Hermelin said in a conference call Friday. For the full year, Cap Gemini said it expects full-year revenue growth of at least 9 percent. Shares fell 2.3 percent to euro50.32 (US$68.69) in late afternoon trading.
Cap Gemini's share price has outperformed the CAC-40 so far this year, boosted by solid results and speculation about a possible bid from Indian company Infosys Technologies Ltd. Hermelin said there had been "no contact of any sort" with Infosys and he does not believe in the possibility of a hostile bid.
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