Atos Origin achieves 2009 operating margin goal
18/02/2010
The company increased its operating margin by more than 80 basis points. Atos Origin achieves 2009 operating margin goal

Fuente:  www.consultant-news.com    Fecha:  18.02.2010

Atos Origin, an international IT services company, announced its results for the full year ending 31 December 2009, reporting revenue of EUR 5.13 billion, down 3.7% compared to 2008 at constant scope and exchange rates.

Operating margin reached EUR 290 million, representing 5.7% of revenue and up more than 80 basis points compared to 2008. At same scope and exchange rates, operating margin increased by 13%. Atos’ objective was to increase its operating margin rate by 50 to 100 basis points during the year.

Net income for the year was EUR 32 million after several non recurring items, including a EUR 154 million company restructuring charge, compared to EUR 23 million in 2008. Adjusted net income was EUR 196 million, up by 9% on 2008.

Thierry Breton, Chairman and CEO of Atos Origin declared: “Despite a declining economy in 2009, the Group achieved its objectives. The operating margin increased by more than 80 basis points and the cash flow generation improved to reduce the net debt by 165 million euros.

“The transformation of the Group, in particular through its deep reorganisation and the TOP Program, allows us to pursue in 2010 according to our plan the improvement of the profitability and the reduction of the financial debt.”

Orders in 2009 totalled EUR 5.15 billion in 2009, down 3% organically compared to 2008. At 31 December 2009, full backlog was EUR 6.8 billion, representing 1.3 year of revenue. This amount includes the cancellation of almost EUR 400 million due to Arcandor’s bankruptcy. The full qualified pipeline was EUR 3 billion, up 14% compared to 2008, mainly thanks to HTTS and Medical BPO; Systems Integration showed a slight increase.

Due to the Arcandor bankruptcy, Atos expects in 2010 a slight revenue organic decrease, however at a lesser extent than the one seen in 2009.

Revenue by Service Line

Representing 5% of revenues, Consulting revenue reached EUR 248 million down 23.7% at same scope and exchange rates compared to 2008. Throughout the year, this activity faced tough market conditions, in particular due to delays or cancellations of projects from large customers. However, during the fourth quarter, Consulting grew sequentially by 14.1%.

Managed Services revenue, 38% of total revenue, reached EUR 1,953 million up 4% compared to 2008. This performance was led by the United Kingdom which grew organically by 22 per cent. Increased focus on cross and up-selling in most geographies resulted in organic growth.

Systems Integration accounted for 37% of company revenue and reached EUR 1,894 million, down 11.2% organically mainly due to the decline in Time & Materials activities.

High Tech Transactional Services (HTTS) reported revenue of EUR 879 million, up 3.5% compared to 2008, representing 17% of company revenue.

Medical BPO revenue, which accounts for 3% of Atos' total revenue, was EUR 153 million, up 3.5% at constant scope and exchange rates. This business is fully operated in the United Kingdom only with increasing volumes with all the major clients, particularly for occupational health services.

Revenue by geographical area

The United Kingdom reported organic growth of 7.4% thanks to the contribution of Managed Services.

France saw a slight decline of 3.0%; Rest of the World declined 4% thanks to the growth in Asia.

Benelux reported a decline of 13.6% affected throughout the year by the weight of cyclical activities, namely Consulting and Time & Materials.

Germany Central Europe / EMA was down by 6.7% and Iberia / South America by 10.1% due mainly to the negative impact of cyclical activities