Atos Q1 revenue reaches EUR 2.2 billion
The company reported organic growth of 2.4%.

Fuente:  Fecha: 27.4.2012

Atos Q1 revenue reaches EUR 2.2 billion

PARIS -- Atos, the international information technology services company, announced 2012 first quarter revenue of EUR 2.163 billion, representing an organic growth of 2.4 % compared to the first quarter of 2011.

Thierry Breton, Chairman and CEO, said: “The first quarter showed a good start of the year confirming an expected solid year 2012. Revenue again grew more than 2% thanks to our strategy following the acquisition of SIS to focus on strengthening our recurring activities. As we committed, the Group is cash positive for the first time since its creation. I am also glad that we finalized the alliance with EMC and VMware to create Canopy, which positions Atos as one of the leading global players in cloud services.”

Atos reiterated its previous forecast that it expects a slight revenue organic growth and an operating margin rate to 6.5% of revenue compared to 4.8% for proforma 12 months 2011.

Representing 46% of Atos, Managed Services revenue was EUR 995 million, up +3.9% compared to the first quarter of 2011. Growth was driven by several geographies including Germany (+6%), North America (+7%), Central & Eastern Europe (+10%) and the UK (+3%). In Benelux and Iberia, revenue was almost stable despite the continued tough market conditions. Revenue in France was down -6 per cent year-on-year but returned to growth sequentially compared to the third and the fourth quarter of 2011. Following the acquisition of SIS, the Service Line has been able to grow by signing multi-year contracts with new customers.

In Systems Integration, representing 25% of Atos, revenue was stable compared to the first quarter of 2011 at EUR 536 million. The start of the year was better than anticipated. The activity grew in Germany, North America, North & South Western Europe and Latin America. Revenue in Benelux showed a further decline due to the continued difficult market conditions. In France, as planned, actions initiated last year to turnaround and to improve the situation are now being implemented.

Representing 22% of Atos, Hi-Tech Transactional Services & Specialized Businesses (HTTS & SB) revenue was EUR 474 million, up 2.9% year-on-year. HTTS business grew by 5.7% mainly driven by e-CS revenues at +14.9%.

For Consulting & Technology Services, which represent 7% of Atos, revenue was stable compared to the first quarter of 2011 at EUR 158 million. In Consulting, utilization rate was 72% compared to 70% for full year 2011 and stable at 84% for Technology Services. The increased activity in Technology Services in France (9%) mainly for Public Sector, and in Consulting in the UK, offset the decline of the Service Line in the Netherlands (down 8%) in Financial Services and Manufacturing sectors.

For the third quarter in a row, the growth was driven by most of the GBUs, and in Europe primarily by the Northern, Central and Eastern geographies.

In Germany, revenue was EUR 418 million, representing a growth of 6.1%. Managed Services strong growth came from the ramp-up of new contracts signed in 2011 and higher business volumes in the Manufacturing sector. In Systems Integration, revenue grew by 4.9% with additional projects which more than compensated the phase out of the Application Management contract with a large German Bank.

In the United Kingdom & Ireland, revenue was EUR 390 million, up 5.8% compared to the first quarter of 2011. Managed Services was up 3.1% due to increased volumes and to the start of delivering new deals won in the fourth quarter of 2011. Systems Integration grew 1.3%. HTTS & SB grew 10.2% due to higher project revenue and volumes notably in the Transport sector.

In Benelux, revenue in the first quarter was EUR 248 million, down 5.2%. In Managed Services, the activity was almost flat compared to the same period last year, thanks to Financial Services in the Netherlands and new clients in Belgium. Difficult market conditions, price pressure and lower volumes continued to affect both Systems Integration and Consulting & Technology Services. The GBU remains focused on margin protection by improving workforce management.

Revenue in France was EUR 255 million, representing an organic decline limited to 1.6% year-on-year, following 6% in the third quarter of 2011 and 4% in the fourth quarter of 2011. In Managed Services, the activity was stabilized compared to the fourth quarter of 2011 thanks to increased business in Energy & Utilities and stable volumes in Financial Services. Technology Services grew by 9% year-on-year with an improved utilization rate above of 84%. In Systems Integration, revenue was down in Manufacturing (automotive industry) and with mobile phone operators.

Revenue for Atos Worldline was EUR 226 million up 1.8% year-on-year. Payment activities were stable due to lesser volume growth in the credit card business in Belgium. eCS was up 8.9% with additional project revenue and hardware sales in France. Financial Market division was stable year-on-year.

In North America (NAM) revenue was EUR 134 million, up 8.4%. Managed Services revenue was up 6.6% following stronger activity with large manufacturing companies. Systems Integration reported a solid growth thanks to an increase of business in Financial Services.

In Central & Eastern Europe (CEE) revenue was EUR 130 million, up 1.2%. Managed Services revenue increased 9.7% thanks to higher volumes in several countries including Turkey and Czech Republic. Systems Integration was down 9.0%. The decline was due in part to less discretionary spending in the Public sector in several countries. It was also due to a one-time hardware sale in Austria in the first quarter of 2011.

In North & South West Europe (N&SWE) revenue was EUR 99 million, up 5.5%. The GBU had a strong growth both in Managed Services and Systems Integration, respectively up 9.2% and 15.2%. The increase materialized primarily in the Manufacturing sector and overcompensated less hardware revenue in the Civil & National Security business compared to the same quarter last year.

In Iberia, revenue was EUR 82 million, down 4.2%. While Systems Integration, thanks to the Telco sector, and Managed Services reported stable revenue, Consulting & Technology Services suffered from the economic conditions mainly in Public Sector and Financial Services.

In Other Business Units, revenue was EUR 181 million, up 2.7% compared to the first quarter of 2011.