Accenture Q1 profits surge as high-growth areas shine

22 Dec 201610 Shares

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Accenture. Image: josefkubes/Shutterstock

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Digital, cloud and security services have helped Accenture report a 22pc rise in profits for Q1, with net revenues coming in at $8.5bn for the company.

Dublin-based consultancy firm Accenture has posted impressive quarterly results, with 2017 expected to continue the trend, though at a slower pace.

Accenture

Its $8.5bn in Q1 revenues is predicted to be almost matched in Q2, with North America (up 6pc), Europe (up 7pc) and ‘growth markets’ (up 10pc) all reporting a surge in recent months.

Sales across most business segments grew, with its products unit rising 17pc. The only group that saw a downturn was resources, which fell 2pc, representing a $1.2bn drop. For the company’s fiscal 2017, it expects net revenue growth to be between 5 and 8pc.

Shareholders did well in the quarter, too, with $1.4bn returned in cash to them. Pierre Nanterme, Accenture’s chair and CEO, said he was pleased with the results, before highlighting areas of interest that the company will focus on in future.

“We continue to make significant investments in new and high-growth areas across Accenture – especially digital, cloud and security services,” he said, with the three areas representing more than 40pc of the company’s total revenues.

“With the differentiated, high-value capabilities we are building, we remain confident in our ability to continue driving profitable growth, gaining market share and delivering value for our clients and shareholders.”

The company recently commissioned a report on where 2017 will take us in terms of technology, with AI in the home soon to eat away at smartphones’ importance.

“We are witnessing an unprecedented era of innovation, placing the need for companies to rewire in order to succeed,” said Brian Whipple, head of Accenture Interactive, which commissioned the report.

Accenture. Image: josefkubes/Shutterstock

Gordon Hunt is a journalist at Siliconrepublic.com

editorial@siliconrepublic.com