CGI Group Inc. (NYSE:GIB) Q4 2015 Earnings Conference Call - Final Transcript
Nov 11, 2015 • 09:00 am ET
communications and utility sectors, all of which grew at double-digit rates. Our US federal government business, which represented a headwind to growth last year, is showing signs of gradual improvement.
The recent two-year budget deal now in place extends the US debt limit and raises spending caps. With this context coupled with a fourth quarter book-to-bill of 144% in CGI Federal moves this business towards being neutral and potentially a positive contributor to growth in fiscal 2016. As a reminder, we are well-positioned in this market, with 58 contract vehicles having a combined ceiling value of well over CAD500 billion.
In Canada, there are three main market focuses driving change that represent growth opportunities for us: the new federal government, commodity pricing under pressure in Western Canada, and the banks facing the same global challenges to reduce the run cost in order to advance strategic initiatives. We continue to invest significantly in the Greater Toronto area, which represents over 50% of Canada's IT spend.
Our banking sector continues to ramp up. As a result, we are experiencing accelerated growth, with revenue up both sequentially and year-over-year. On the whole, our funnel continues to expand with high-quality opportunities, including long-term IP-based solutions. Turning to Europe, we see the same trends and positive opportunities as clients' agendas are focused on transformation.
Our teams continue to successfully execute our strategy or proactively engaging with clients and capturing opportunities to earn new business. The book-to-bill in Europe was 107% in the quarter and over 100% for the year. Again, aligned with our strategy to improve the business mix, these awards are higher quality. For example, digitizing the City of Edinburgh is a seven-year engagement that positions us as a top contender for future digitization opportunities across all verticals and on a global basis.
Overall, clients around the world need to be customer-centric digital companies with strategies based on achieving that goal. Our high-end consulting helps clients design their digital strategy. Our data and analytics are driving value by providing actionable information. Our cyber security offering ensures protection at all levels for all stakeholders.
And when taken together, our transformational outsourcing offering allows clients to successfully fund and sustain their long-term strategies. In summary, we believe our consistent performance, improving market conditions, the relevance of our services and solutions, underpinned by our global reach, will contribute to our ability to increase earnings per share through the return to growth and maintaining operational excellence across the business.
Thank you for your continued interest and support, let's go to the questions. Lorne?
Just a reminder that a replay of the call will be available either by our website or by dialing 1800-408-3053 and using the passcode 8806386 until December 12, as well a podcast of the call will be available for download within a few hours, and as usual, follow-up questions can be directed to me at 514-841-3355.
Wayne, if we could poll for questions, please?