CGI Group Inc. (NYSE:GIB) Q3 2020 Earnings Conference Call - Final Transcript
Jul 29, 2020 • 09:00 am ET
Good morning, ladies and gentlemen, and welcome to the CGI Third Quarter Fiscal 2020 Conference Call.
I would now like to turn the meeting over to Mr. Lorne Gorber, Executive Vice President, Investor and Public Relations. Please go ahead, Mr. Gorber.
Thank you, Sharon and good morning. With me to discuss CGI's third quarter fiscal 2020 results are George Schindler, our President and CEO; and Francois Boulanger, Executive Vice President and CFO. This call is being broadcast on cgi.com and recorded live at 9:00 AM Eastern Time on Wednesday, July 29, 2020.
Supplemental slides as well as the press release we issued earlier this morning are available for download along with our Q3 MD&A, financial statements and accompanying notes, all of which are filed with both SEDAR and EDGAR, and are available for download on our website along with supplemental slides. Please note that some statements made on the call may be forward-looking. Actual events or results may differ materially from those expressed or implied and CGI disclaims any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The complete Safe Harbor statement is available on both our MD&A and press release, as well as on cgi.com. We encourage our investors to read it in its entirety.
We are reporting our financial results in accordance with International Financial Reporting Standards or IFRS. As always, we will also discuss some non-GAAP performance measures, which should be viewed as supplemental. The MD&A contains definitions of each one used in our reporting. All of the dollar figures expressed on this call are Canadian, unless otherwise noted.
So with that, I'll turn the line over to Francois to discuss the quarter.
Thank you, Lorne, and good morning everyone. I'm pleased to share our results for the third quarter. Revenue came in CAD3.1 billion, down 2.2% when compared to last year and representing a constant currency decline of 3.5% year-over-year. IP remained stable both sequentially and year-over-year at 21% of revenue. We had a near term headwind from transaction volumes on certain SaaS based IP engagements due to the pandemic impact. For example, travel restriction reduced U.S. visa volumes and increased unemployment had a negative effect on payroll volumes. However, new IP revenue was added to the portfolio from the recent acquisitions of Sunflower, SCISYS and Meti, which offset these temporary transaction declines.
While the impact of the pandemic was felt broadly across our operations in the quarter, we initiated the necessary actions to minimize the bottom-line impact to position CGI for future profitable growth. As such, we expect a gradual improvement in the months and quarters ahead. Despite widespread economic pressures around the world during the quarter, we were able to close CAD2.8 billion in new contracts for a book-to-bill of 93% higher than last quarter, a proof point regarding the strength of our existing client relationships and our ability to win business throughout the crisis. As client executives and CGI consultants continue