Q4 2024 CGI Inc Earnings Call Transcript
Key Points
- CGI Inc (GIB) reported strong Q4 2024 results with $3.7 billion in revenue, marking a 4.4% year-over-year increase.
- The company achieved a book-to-bill ratio of 104% in Q4, indicating strong demand for its services.
- Managed Services bookings were particularly robust, with a book-to-bill ratio of 120%, highlighting growth in recurring revenue streams.
- CGI Inc (GIB) maintained a strong cash position with $3 billion readily available, supporting future investments and acquisitions.
- The company announced a cash dividend of $0.15 per share, reflecting its commitment to returning value to shareholders.
- Financial services in Europe and communications in North America faced challenges, impacting overall growth in these sectors.
- The effective tax rate increased to 26.4% from 25.7% last year, partly due to tax credit adjustments and changes in the UK statutory rate.
- Bookings for business and strategic IT consulting and system integration were lower, with a book-to-bill ratio of 85%, reflecting softness in discretionary spending.
- The company experienced lower utilization within the financial services sector, particularly in Europe, affecting profitability.
- CGI Federal bookings were below 100% due to the US election year, which typically slows down government procurement processes.
Good morning, ladies and gentlemen. Welcome to the CGI fourth-quarter fiscal 2024 conference call.
I would now like to turn the meeting over to Mr. Kevin Linder, SVP of Investor Relations. Please go ahead, Mr. Linder.
Thank you, Joelle, and good morning. With me to discuss CGI's fourth quarter and fiscal 2024 results are Francois Boulanger, 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 AM Eastern Time on Wednesday, November 6, 2024. Supplemental slides as well as the press release we issued earlier this morning are available for download along with our fiscal 2024 MD&A, audited financial statements and accompanying notes, all of which have been filed with both SEDAR-plus 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
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