Tech consultancy CGI posts strong second quarter results
Montreal-based global technology consultancy CGI reported a revenue of $3.1 billion in Q2 2019, a 4.0% year-over-year increase.
The consulting giant, which has 77,000 employees globally and posted $11.5 billion in revenues in FY2018, revealed promising figures in its second quarter report to investors. The public company is listed on the TSX and NYSE.
In addition to strong revenue growth – riding a continuing wave of demand for its digital transformation services – CGI also reported that net earnings hit $318.3 million in Q2, an increase of $43.9 million from Q2 2018. Earning per diluted share, meanwhile, were $1.14, up 21.3% from $0.94 last year.
CGI reported bookings of $3.3 billion in Q2, and $13.3 billion over the last 12 months. As of March 2019, the consultancy’s backlog of projects stood at $22.9 billion, up $897.9 million from last March.
"I am pleased with the positive momentum our team has generated in the first half of fiscal 2019, as demonstrated by the growth in each of our operating segments worldwide, as well as a growing pipeline of future opportunities," George D. Schindler, president and CEO, said. "These results reflect the strength of our build and buy strategy, underscoring our position as our clients' end-to-end enterprise partner of choice."
The firm completed a significant acquisition in April, paying $614.7 million to purchase all outstanding shares of Acando, a Stockholm-based business and technology consulting firm. The deal added 2,100 professionals, while significantly strengthening CGI’s capabilities and footprint in Northern Europe. The Acando acquisition also expanded the firm’s expertise in the sectors of manufacturing, retail, and government.
Banking on new business
CGI also recently announced that global bank HSBC has tapped the firm to deliver a new global trade technology platform across the organization. The solution will be built on the CGI Trade360 trade finance platform, and will upgrade the agility and processing power of the bank’s global trade and receivables business.
The infrastructure will leverage blockchain, APIs, and the Internet of Things, and will enhance customer services through a greater degree of digital engagement.
"Working together on an important industry program such as this is mutually beneficial to us both, as it will allow HSBC to speed up the process of bringing additional value to their client base, while enabling CGI to accelerate the value of our market leading intellectual property," Neil Sadler, senior vice president, UK financial services, CGI, said.
