Atos confirms full year guidance despite slight drop in Q3 revenues
Atos said book to bill ratio stood at 96%; strong backlog of EUR 14 billion represents 1.6 years of revenue.

Fuente:  Fecha: 27.10.2011

Atos confirms full year guidance despite slight drop in Q3 revenues

PARIS -- Atos, the international information technology services company, said revenues for the third quarter of 2011 were EUR 2.1 billion, representing a 0.3% drop compared to the third quarter of 2010.

Thierry Breton, Chairman and CEO, said: “During the third quarter of 2011, as planned, we have been able to successfully run the new Atos as a single integrated company. In the current economic environment, our new Group is well positioned, generating 74 % of its annual revenue through multi-year contracts across a very large customer base. Consequently, I confirm all our 2011 objectives. Finally, cash management is more than ever a key priority for Atos, and I confirm our zero net debt ambition for mid 2012.”

Atos confirmed its revenue forecast for 2011 at around EUR 6.8 billion.

Revenue performance by service line

Representing 48% of Atos’ business, Managed Services revenue was EUR 1.007 billion, up 2.1% compared to the third quarter of 2010. The Service Line benefited from a growing business in Germany, in the United Kingdom, North America, and Central & Eastern Europe.

In Systems Integration, representing 25% of the business, revenue declined by 4.1% to EUR 528 million. In Germany and in Central & Eastern Europe (CEE), revenue declined as expected, due to less hardware revenue and the planned reduction of SIS staff during the second half of 2010 and in the first half of 2011. While revenue grew in the United Kingdom, it declined in the Netherlands with less volumes and also in France where price pressure persisted and impacted the level of new contracts signed.

Representing 20 % of the business, Hi-Tech Transactional Services & Specialized Businesses (HTTS & SB) revenue reached EUR 421 million, up 2.3% compared to the third quarter of 2010. HTTS business grew by 3.5%, of which Payments 2.7%. Revenue for BPO was up 4.0%. The decline in other Specialized Businesses was 4.8% (EUR -3 million) and came from EUR 10 million less hardware revenue compared to last year on the pilot project for ERDF.

In Consulting & Technology Services, representing respectively 2% and 5% of the business, revenue was EUR 136 million, a decline of 9.2% compared to the third quarter of 2010. As expected, the Netherlands and Iberia continued to face a tough environment particularly in Financial Services and Public Sector.

Revenue performance by business unit

In Germany, revenue reached EUR 448 million, representing a decline of 1.2%. Revenue in Managed Services grew by +1.5% with the ramp-up of new clients signed in the first half of 2011, and as expected with Siemens as a result of the new IT contract started on July 1st, 2011. In Systems Integration, revenue declined by 5.2%, mainly due to lower volumes with some clients, including the ramp-down of the Application Management contract with a large German bank.

Revenue in France was EUR 228 million, down 5.8% compared to the third quarter of 2010. The activity declined in Managed Services where revenue was affected by the ramp-down of contracts and a lack of fertilization in Telecom & Media and in Financial Services. The new management of France started on October 1st, 2011, with the objective to return France to profitable growth.

In the United Kingdom & Ireland, revenue reached EUR 349 million, up 4.3% compared to the third quarter of 2010. Managed Services was up 4.4% due to increased volumes and with large clients acquired from SIS. Systems Integration benefited from an increased activity, resulting in revenue up 6.1% compared to the third quarter of 2010. Within HTTS & SB, HTTS grew 6.7% due to higher volumes from customers in the Transport sector, and BPO grew by 4.0% with the ramp up of a new contract signed in the first quarter of 2011.

In Benelux, revenue reached EUR 242 million, down 7.0% compared to the third quarter of 2010. While revenue was growing in Belgium in each Service Line, the activity continued to decline in the Netherlands in the cyclical businesses for discretionary spending, with lower volumes in Financial Services and more recently in the Public sector. In this country where prices stabilized, the Group focuses on workforce management by re-skilling staff and decreasing the number of subcontractors, in order to protect the operating margin.

Revenue for Atos Worldline was EUR 226 million up 1.0%. Compared to the third quarter of 2010, Payment activities grew by 2.1% led by the operations in Belgium and in France. eServices grew by 2.5%, while as planned, Financial Markets declined by 13.1%.

In Central & Eastern Europe (CEE) revenue reached EUR 129 million, down 1.4%. Managed Services posted a strong growth which fully offset the revenue decline in Systems Integration. In Managed Services, revenue grew by 16.2%, benefiting from the ramp-up of contracts in the Public sector in Austria and in Slovakia. In Systems Integration, revenue continued to grow in Poland in the Telecom sector, but was not sufficient to offset a reduction in Manufacturing and Public sectors, mainly on projects which are now run by Managed Services after a successful transition in countries such as Austria and Slovakia.

In North America (NAM) revenue was EUR 125 million, up 7.7%. The growth mainly came from Managed Services which posted 9.1%, benefiting from new businesses in the Financial Services which started to generate revenue respectively at the end of 2010 and at the beginning of 2011, and in the Manufacturing Sector.

In North & South West Europe (N&SWE) revenue reached EUR 108 million, up 6.8%, mainly driven by Switzerland which achieved a double digit growth, particularly in Managed Services and also in HTTS & SB activities with a favourable comparison basis with the third quarter of 2010 in the Civil and National Security business.

In Iberia, revenue was EUR 79 million, up 0.3%. Managed Services remained flat, and HTTS & SB grew with higher volumes in loyalty and payment cards. Systems Integration grew thanks to the ramp-up in volumes and new pricing with a large bank and extended activities in Application Management with the Telecom sector. However, the growth in Systems Integration was offset by lower volumes in Consulting & Technology Services as a result of the market conditions which continue to remain tough.

In other business units, revenue reached EUR 158 million, stable at 0.1% compared to the third quarter of 2010. Latin America grew by 15.8%, thanks to more volumes on multi-year contracts in Managed Services, and in new contracts for HTTS in the Transport sector. In Asia Pacific, revenue grew slightly thanks to Systems Integration contracts, both in China and in Australia.