Q3 2024 CGI Inc Earnings Call Transcript
Key Points
- CGI Inc (GIB) reported a revenue increase to $3.7 billion, up 1.3% year-over-year, with strong growth in segments like Northwest and Central East Europe and Asia Pacific.
- The company achieved a book-to-bill ratio of 117% for the quarter, with notable strength in US federal, UK, Australia, and Western and Southern Europe.
- Earnings before income taxes were $594 million, representing a margin of 16.2%, up 80 basis points year-over-year.
- CGI Inc (GIB) announced two strategic acquisitions, expanding its capabilities in Canada and the US federal government sector.
- The company initiated a dividend program, reflecting its strong financial position and commitment to returning value to shareholders.
- CGI Inc (GIB) experienced softness in certain verticals such as financial services and communication in Western and Southern Europe and North America.
- There is a continued slowdown in systems integration and consulting (SI&C) services, impacting overall growth.
- The company noted delays in the timing of decisions for stand-alone SI&C projects, reflecting cautious client spending.
- The macroeconomic environment remains dynamic, with clients exercising caution in their spending, affecting the pace of project conversions.
- CGI Inc (GIB) faced challenges in the French market due to a wait-and-see approach from clients amidst political uncertainties.
Good morning ladies and gentlemen. Welcome to CGI's third quarter fiscal 2024 conference call. Iâd now like to turn the meeting over to Mr. Kevin Linder, SVP of Investor Relations. Please go ahead, Mr. Linder.
Thank you, Julie and good morning. With me to discuss CGI's third quarter fiscal 2024 results are George Schindler, our President and CEO and Steve Perron, Executive Vice President and CFO. This call is being broadcast on cgi.com and recorded live at 9:00 a.m. Eastern Time on Wednesday, July 31, 2024. Supplemental slides as well as the press release we issued earlier this morning are available for download, along with our Q3 MD&A, financial statements and accompanying notes, all of which have been filed with both SEDAR+ and EDGAR.
Please note that some statements made on the call may be forward-looking. Actual events or results may differ materially from those expressed or implied, and CGI disclaims any intent or obligation to update or revise any forward-looking statements,
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