OSLO - CGI Inc. (TSX: GIB.A) (NYSE: GIB), a prominent IT and business consulting services firm, has announced the extension of its partnership with ExxonMobil (NYSE:XOM) to provide payment and loyalty services across Europe and the Asia Pacific. The collaboration focuses on the use of CGI's PayPartner360 for processing payments at over 13,000 fuel retail sites and managing a loyalty program with more than 10 million active users.
CGI PayPartner360, a card payment solution, is designed to enhance customization for ExxonMobil and its customer base, ensuring the seamless delivery of essential payment infrastructure services. Ferenc Both, ExxonMobil's Head of Development and Operations for Europe, Middle East, and Africa, highlighted the platform's role in maintaining uninterrupted availability for payment hubs and supporting the company's loyalty program.
Andy Schmidt, Vice-President & Global Industry Lead for Banking at CGI, emphasized the partnership's significance in demonstrating CGI's capability to deliver advanced business solutions that address secure payment technologies and industry-specific needs, aiding clients in the fast-paced global market.
Processing over 1.6 billion fuel retail transactions annually across 29 countries, CGI PayPartner360 offers modules for loyalty programs, payment credential issuance, pricing management, billing solutions, and customer service support. It is positioned as a key accelerator for clients, combined with CGI's global payments expertise in various electronic payment types.
CGI, established in 1976, stands as one of the world's largest independent IT and business consulting services firms, with a reported revenue of CA$14.30 billion in Fiscal 2023. The company's shares are traded on both the TSX and NYSE.
This partnership renewal is expected to further CGI's presence in the payment processing landscape, continuing its provision of comprehensive solutions to a leading energy and petrochemical company.
The information above is based on a press release statement.
In other recent news, CGI Group (NYSE:GIB) Inc. reported its second-quarter financial results for the year 2024. The company's revenues were slightly below expectations, but earnings per share (EPS) were slightly above, indicating effective cost control measures and an increasing mix of intellectual property (IP). BMO Capital Markets responded to the financial results by reducing CGI Group's price target from Cdn$170.00 to Cdn$160.00, but maintained an Outperform rating on the stock.
CGI Group's recent developments also include a modest increase in revenue for the second quarter of fiscal year 2024, with a focus on digital services expansion and merger opportunities. The company's revenue was CAD 3.7 billion, marking a 0.7% year-over-year growth. The government sector led with a 5.7% growth, while the company's Intellectual Property (IP) contributed to 22% of the total revenue, with over 60% delivered as Software as a Service (SaaS).
CGI Group's net earnings increased to CAD 427 million, with a margin of 11.4%, and the global backlog reached CAD 26.8 billion. The company is actively investing in artificial intelligence (AI) and enhancing its partner ecosystem.
InvestingPro Insights
CGI Inc. (NYSE: GIB), a stalwart in IT and business consulting, continues to leverage its expertise with the extension of a significant partnership with ExxonMobil. As the company forges ahead, it's worth noting that CGI has been profitable over the past twelve months, a testament to its operational success. This financial stability is underscored by a robust Piotroski Score of 9, indicating a strong financial position, which can be particularly reassuring to investors in the current economic climate.
InvestingPro data reveals CGI's market capitalization at a solid $23.01 billion, reflecting the company's substantial market presence. The firm's P/E ratio, currently at 19.22, suggests a premium market valuation which aligns with its position as a prominent player in the IT Services industry. Moreover, CGI's revenue growth of 5.87% over the last twelve months as of Q2 2024 demonstrates its ability to expand effectively in its sector.
For investors seeking additional insights, there are more InvestingPro Tips available, such as CGI's low price volatility and the fact that the company does not pay a dividend, which could influence investment strategy. Subscribers can access a wealth of further analysis, with the opportunity to utilize the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With these tools, investors can make more informed decisions as CGI continues to navigate the rapidly evolving landscape of payment processing and loyalty services.
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