Canada's CGI reports 26 percent jump in profit in third quarter

Wed Jul 30, 2014 8:09am EDT
 
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TORONTO, July 30 (Reuters) - CGI Group Inc reported a 26 percent jump in third-quarter profit on Wednesday, helped by stronger revenue.

The Montreal-based computer services provider, which had lost the contract to manage last year's U.S. healthcare plan known as Obamacare after a botched launch, said it earned a net profit of C$225.1 million ($207.26 million), or 71 Canadian cents per share, in the three months ended June 30.

That was up from C$178.2 million, or 56 Canadian cents, a year earlier.

Excluding special items, such as integration-related health costs, the company earned 72 Canadian cents a share, while revenue rose 4 percent to C$2.7 billion.

Analysts had on average expected CGI to earn 73.2 Canadian cents a share on revenue of C$2.7 billion, according to Thomson Reuters I/B/E/S.

CGI has relied on Europe for growth over the last year, helped by its 2012 purchase of Logica, a former British competitor.

($1 = 1.0861 Canadian Dollars) (Reporting by Alastair Sharp; Additional reporting by Cameron French; Editing by Bernadette Baum)