CMT remains the key
The Communications, Media, and Technology (or CMT) unit continues to be a lucrative segment for Accenture (ACN). It contributes around 20% of the company’s overall revenue. In the fourth quarter of fiscal 2018, the unit revenue came in at nearly $2.1 billion, up 14.8% YoY. The solid double-digit growth in the software platforms driven by strong demand in North America continues to boost the company’s CMT performance. The telecom sector remains a key catalyst in the company’s CMT unit. The demand for higher bandwidth has led to the launch of 4G and the upcoming 5G networks, and has thus generated more orders from the telecom space.
In September 2018, the company launched a new set of services to boost 5G deployment, mainly targeting CSP (communications service providers) players like AT&T (T) and Verizon (VZ). Thus, the rollout of such services may further contribute to its CMT unit going forward.
Product segment and Health and Finance segment
The Product division, which constitutes nearly 28% of total revenue, has posted double-digit growth for the past 13 quarters. During the fourth quarter, revenues improved 12.5% YoY to nearly $2.8 billion. The graph above shows the different units’ contribution in the fourth quarter.
The company’s Health & Public Service unit saw 6% YoY growth buoyed by the strong growth in the public service division coupled with double-digit growth in both Europe and growth markets. However, the company’s Finance group saw the lowest growth of 3.2% in Q4 2018.