CGEMY Capgemini SE (PK)

French IT services group Capgemini SA (CAP.FR) Thursday said it expects like-for-like revenue to grow between 3% and 5% in the second half of the year and slightly raised its full-year margin target as markets are expected to continue to improve.

Paris-based Capgemini, Europe's largest computer services company, said its earnings before interest and tax, or EBIT, margin should exceed 6.5% this year while the group had previously targeted a margin of between 6% and 6.5% this year.

"First-half results, both in terms of growth and profitability, confirmed the appropriateness of decisions taken, while the dynamism of bookings validated the assumption that this improvement will continue in the second half, despite ongoing macroeconomic concerns and significant stock market volatility," Capgemini said in a statement.

Net profit for the first six months of the year rose 2.4% to EUR101 million, from EUR78 million last year, above expectations of EUR85.3 million, according to five analysts polled by Dow Jones Newswires.

Earnings before interest and tax however fell to EUR245 million from EUR287 million last year, but beat analysts expectations of EUR226 million.

This gave the company an EBIT margin of 5.8%.

Revenue in the first half fell 3.8% to EUR4.21 billion from EUR4.38 billion in the same period a year ago.

Capgemini shares Wednesday closed at EUR33.87. The stock has gained about 6% since the start of the year.

-By Ruth Bender, Dow Jones Newswires; +33 1 40 17 17 54; ruth.bender@dowjones.com

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