Atos see orders increase in 3Q
PARIS -- Atos, an international information technology services company, today announced its revenue for the third quarter of 2012. Order entry was EUR 2,532 million, up +23 per cent year-on-year, leading to a book to bill ratio of 116 per cent. Revenue was EUR 2,181 million, representing an organic growth of +0.2 per cent compared to the third quarter of 2011. Free cash flow was EUR 32 million, leading to net cash increasing to EUR 112 million at the end of September 2012.
For the first nine months of 2012, book to bill ratio was 114 per cent and revenue reached EUR 6,547 million, up +1.0 per cent year-on-year.
Thierry Breton, Chairman and CEO, said: “In the third quarter, we have achieved a very strong order entry with new large deals signed in the UK, Germany and Scandinavia, despite a challenging economic environment for cyclical activities. Together with the major wins signed in the first half of 2012, this will contribute to secure our 2013 targets. We also continued to focus on the execution of our transformation and integration programs. Finally, we confirm all our 2012 objectives.”
“The achievements of the last quarter confirm the strength of the Atos’ specific business model implemented over the past few years, and particularly well suited to the current environment with 77 per cent recurrent revenue and a very competitive positioning on the large outsourcing and cloud opportunities.”
Representing 48 per cent of the Group, Managed Services revenue was EUR 1,038 million, up +0.8 per cent compared to the third quarter of 2011.
Growth was mainly driven by the UK, France, and the US. In the UK, the ramp-up of the Nuclear Decommissioning Agency and the Department of Health contracts resulted in double digit growth.
In France, the growth was led by the ramp-up of the EDF contract and in North America thanks to the first effects of the McGraw-Hill contract.
The successful completion at the end of the first half of 2012 of the Siemens project to separate and transform the platforms between Siemens and the former SIS scope impacted as expected Managed Services revenue in the third quarter 2012 by EUR 15 million mainly in the GBU Germany. Excluding this base effect, Managed Services grew in Germany in Q3 2012.
In Benelux and Iberia, revenue was almost flat.
Over the first nine months of 2012, Managed Services revenue was EUR 3,063 million, representing an organic growth of +2.2 per cent.
For Systems Integration, representing 24 per cent of the Group, revenue was EUR 515 million, down -1.5 per cent compared to -3.7 per cent in the second quarter of 2012. The Service Line faced a challenging economic environment, particularly in France and Iberia. Benelux returned to growth and reported a +4.7 per cent increase in the Netherlands linked to new projects in Public sector, Manufacturing, and Retail.
UK remained above +4 per cent growth as in H1 2012 thanks to growing business in the Public Sector, Healthcare & Transport markets, while Germany continued to face the anticipated ramp-down of the Application Management contract with Commerzbank.
North America continued to demonstrate double digit growth thanks to a strong increase in revenue in Financial Services.
Finally, “Other Business Units” recorded strong growth including the contribution of the London 2012 Olympic & Paralympic Games in the third quarter 2012.
Over the first nine months of 2012, revenue for Systems Integration was EUR 1,582 million, down -1.8 per cent.
Representing 22 per cent of the Group, Hi-Tech Transactional Services & Specialized Businesses (HTTS & SB) revenue was EUR 488 million, up +3.1 per cent year-on-year. HTTS business grew by +2.4 per cent driven by Payment activities which were up +4.0 per cent, while eCS reported a slight growth thanks to increased fertilization on projects in France.
In Specialized Businesses, BPO continued to report double digit growth thanks to an increase in volumes in both Financial and Medical activities. Civil & National Security grew by +5.7 percent thanks to higher activity in Switzerland and Italy.
Over the first nine months of 2012, HTTS & SB revenue grew +3.2 per cent to EUR 1,455 million.
For Consulting & Technology Services, which represents 6 per cent of the Group, revenue was EUR 140 million, down -7.0 per cent year-on-year, a decline especially visible in September due to the adverse environment for short term cyclical activities, more particularly in Benelux and Iberia. France grew thanks to the start of new contracts in Consulting and a better utilization rate in Technology Services. In the UK, revenue was up +8.0 per cent year-on-year, mainly thanks to new Consulting practices in the Public sector.
For the first nine months of 2012, revenue for Consulting & Technology Services was EUR 447 million, down -4.1 percent.