Capgemini Australia and New Zealand (A/NZ) has posted a rounded A$39 million post-tax loss on the back of its triple-acquisition spree in 2021.
The global systems integrator’s loss for the year ended 31 December 2022 fell by approximately 3,000 per cent from the prior year’s profit of A$1.3 million.
At the same time, Capgemini's revenue was boosted by 56 per cent from A$566.1 million to A$881.3 million and an 8 per cent increase in earnings before interest, tax, depreciation and amortisation (EBITDA) from A$36.5 million to A$39.3 million, excluding non-cash share-based payment expense and business combination costs for-post-merger integration.
Capgemini, which is registered as Capgemini Australia in Wellington, New Zealand, spent A$540.7 million on staff benefits expenses, A$231.1 million in consultants expenses and A$70.6 million on what it referred to as "global, logo and management" fees.
It also paid A$4.1 million in income tax, a roughly 467 per cent rise from the previous year’s A$723,000.
The results follow a period of major acquisitions during 2020 and 2021. These included notably RXP Services (A$86.7 million) in November 2020 and Empired (A$233 million) and Acclimation (A$61 million) in July 2021, spending a collective A$380.7 million.
Capgemini has been contacted for comment.
RXP brought on board 550 professionals and broadened Capgemini’s presence in the market specifically in areas of ServiceNow, cloud and custom application development. It also involved the digital creative agency The Works.
Meanwhile, the acquisition of Empired and its wholly owned New Zealand subsidiary Intergen gave Capgemini leverage into the New Zealand and US markets, bringing significant capability in areas of digital, cloud and in particular in the Microsoft space, particularly with Azure and Dynamics 365. That acquisition added 1,100 IT professionals.