For the fourth quarter ended August 31, Bermuda-based Accenture grew net profit 216% to $120.5 million, on net revenue that increased 12% to $3.02 billion, up 5% in local currency.
In the full-year period, net profit grew 103% to $498.2 million on revenue up 2% at $11.8 billion, down 4% in local currency. The bottom line was also helped by continued cost-cutting drives across the organization, which included a total saving of $388 million relating to the reduction in facilities and technology costs, bad debt expenses, business protection costs, market development spending, and compensation.
The increase in revenue for the fourth quarter and full year was partly due to a low tax rate, and a weak US Dollar. However, the company experienced particularly strong demand for its outsourcing services, which saw revenue rise 41% to $1.04 billion in the fourth quarter, up 37% at $3.57 billion in the full year.
Accenture is also a bellwether for the IT consulting market where it derives over two-thirds of its revenue. However, the company continues to see clients drive their business towards its outsourcing proposition and away from its traditional consulting services. And after recent upbeat noises the market continues to show sluggish demand. For the fourth-quarter period, Accenture reported flat growth in consulting revenue at $1.87 billion. In the full-year period, consulting sales fell 10% to $7.92 billion.
Geographically, the Americas were the worst performing region for Accenture, with revenue in the full-year period down 3% at $5.84 billion. Declines were offset by improving performances with EMEA, where sales grew 8% to $4.96 billion, as well as Asia Pacific, where revenue was up 2% at $790m.
For the first quarter ending November 30, Accenture expects to report revenue down slightly on a sequential basis at $3 billion, with earnings per share of between $0.27 and $0.28.
This article was based on material originally published by ComputerWire.
