Accenture sees sales and profits up as it turns to SMAC

Sales in social, mobile, analytics and cloud are growing fast

Outsourcer Accenture has reported an increase in global sales and operating profits for the third quarter, but sales in the EMEA region were slightly down.

For the third quarter ended 31 May net revenues were US$7.2 billion, an increase of 1 percent in US dollars, and 3 percent in local currency over the same period last year.

This was slightly below the company's guided range of $7.25 billion to $7.50 billion.

Operating income for the quarter increased to $1.14 billion, including the benefit of $50 million from a reduction in corporate reorganisation liabilities. Excluding the benefit, operating income increased 3 percent to $1.09 billion, with operating margins also up.

New contract bookings for the quarter were $8.3 billion, with consulting bookings of $3.9 billion and outsourcing bookings of $4.4 billion.

Pierre Nanterme, Accenture CEO, said: "Our third-quarter results were solid overall, although consulting revenues were below our expectations. We delivered very good profitability, with operating margin expansion and EPS (earnings per share) growth reflecting the disciplined management of our business."

He added: "Quarterly new bookings of $8.3 billion brought us to nearly $25 billion for the first three quarters of the year, which positions us well for the future and demonstrates the relevance of our services and capabilities to the needs of our clients."

EMEA third quarter sales were down to $2.78 billion, compared with $2.91 billion for the third quarter of 2012, a decrease of 4 percent in US dollars and 1 percent in local currency.

TechMarketView analyst Anthony Miller said of the results: "Accenture incoming CFO David Rowland on last might's Q3 investor call announced one of Accenture's rare 'misses' in company guidance, because consulting softened more quickly and severely than management expected.

"Outsourcing was the opposite story, with revenues and bookings higher than expected, but Accenture forecasts a slowdown in outsourcing growth."

An acronym being promoted in the US covering growth areas is "SMAC" - social, mobile, analytics and cloud - and Accenture said sales in these areas were growing faster than its traditional services, "but there were no numbers to back this up", said Miller.

Accenture's Nanterne said, "The creators of 'SMAC' are in the US and the early adopters of these new technologies are more in the US."

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags business issuesfinancial resultsaccentureIT Business

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Antony Savvas

Computerworld UK
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?