CAPMF - Capgemini SE (CAPMF) Q2 2024 Earnings Call Transcript
2024-07-26 15:33:07 ET
Capgemini SE (CAPMF)
Q2 2024 Results Conference Call
July 26, 2024 02:00 AM ET
Company Participants
Aiman Ezzat - Chief Executive Officer
Olivier Sevillia - Group COO & Executive Board Member
Nivedita Bhagat - Chief Financial Officer
Conference Call Participants
Balajee Tirupati - Citi
Mohammed Moawalla - Goldman Sachs
Sven Merkt - Barclays
Toby Ogg - JPMorgan
Michael Briest - UBS
Laurent Daure - Kepler Cheuvreux
Frederic Boulan - Bank of America
Nooshin Nejati - Deutsche Bank
Nicolas David - ODDO BHF
Presentation
Aiman Ezzat
Good morning and thank you all for joining us for the H1 2024 Results Call. And today, I'll be joined by our CFO, Nive Bhagat; and our COO, Olivier Sevillia.
So as anticipated, the demand environment began to show some signs of improvement in Q2, most notably in North America. Globally, clients continued to prioritize efficiency through cost transformation programs. And the demand for this discretionary deals remained relatively tame. Revenues in H1 stand at €11.138 billion, so down 2.6% at constant exchange rate. And as previously stated, Q1 proved to be the trough. And revenue growth rate improved in Q2, coming at minus 1.9% at constant exchange rate versus minus 3.3% in Q1.
Bookings totaled €11.793 billion in H1, leading to a book-to-bill ratio of 1.06 for the period. The booking trend also improved in Q2. The book-to-bill in Q2 2 was 1.09, which is above historical average and reflect that there is still ongoing robust commercial momentum. The H1 operating margin is stable at 12.4% year-on-year. And the continued shift in the -- Capgemini's mix of offering towards more innovative and value-added services is leading to an increase of our gross margin, illustrating the strength of our positioning.
Organic free cash flow generation also improved. It amounted to €163 million in H1, up €216 million year-on-year. And finally, the normalized EPS is up by 1% year-on-year to €5.88.
So overall in an environment that remained soft throughout the half year, as anticipated, the group demonstrated the resilience of its operating performance....
Capgemini SE (CAPMF) Q2 2024 Earnings Call Transcript