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Oct. 27, 2020, 3:03 a.m. EDT

Capgemini revenue rises on pick-up in demand

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By Mauro Orru

Capgemini SE said Tuesday that revenue for the third quarter increased, citing significant improvements across all its regions and businesses, accelerated demand for digital and cloud services and benefits from the consolidation of Altran Technologies.

The French consulting and technology group said revenue climbed to 4.01 billion euros ($4.74 billion) from EUR3.47 billion in the third quarter of 2019.

The result represents a 15.6% rise on a reported basis, but a 3.6% contraction on an organic basis.

Bookings for the quarter rose to EUR3.90 billion, marking a 17.4% year-over-year increase at constant exchange rates.

"The quarter, which came in better than expected, brought a significant performance improvement over 2Q across all our regions and businesses. Digital and cloud continues to expand, up more than 10% year-on-year, and bookings remain strong," said Capgemini Chief Executive Aiman Ezzat.

In early September, Capgemini said that it expected a gradual recovery in the second half. It projected 2020 revenue growth between 12.5% and 14% at constant exchange rates, with an estimated contribution from acquisitions of 17%, forecasting an operating-margin reduction of 0.6 to 0.9 point compared with the 2019 rate of 12.3%.

The company Tuesday said it now expects 2020 performance to exceed the midpoint of the range for revenue growth and operating margin.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

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