Atos Releases Revenue Report of Q1 2017

Atos announces the revenue of its first quarter of 2017. 

Q1 2017 revenue (including Unify S&P as of January 1st, 2017) was € 3,111 million, up +2.0% organically and +12% at constant exchange rates. Order entry was € 3,035 million leading to a book to bill ratio of 98%. 

Thierry Breton, Chairman and CEO said: “During the first quarter, the Group experienced the best commercial performance since I began leading the company. This materializes the full alignment of our Digital Transformation Factory offerings with the demand of our clients for transformational and automated digital services. 

While discussions were still going on, the Board of Directors decided today that, timewise, the integration of Unify Software & Platforms will create more value for our shareholders. The integration will also further reinforce our Digital Workplace offering with unified collaboration and communication solutions. 

Taking into account the integration of Unify S&P, Atos raised its operating margin objective for 2017, driving profitable growth through high value technologies and innovative solutions.” 

Integration of Unify Software & Platforms

The decision was made to integrate Unify Software & Platforms into Atos (Infrastructure & Data Management division). This entity generated revenue of € 677 million in 2016, while services revenue delivered by Atos to Unify Software & Platforms represented € 231 million in 2016 (neutralized in the Atos consolidation perimeter as of January 1st, 2017). For 2017, further to the restructuring completed in 2016 and cross-selling on Atos customer base supporting a revenue positive organic growth by year-end, the integration of Unify Software & Platforms is expected to contribute for circa € 100 million additional OMDA.

As such, figures presented in this document include Unify Software & Platforms operations.

2017 objectives

Taking into account the integration of Unify Software & Platforms from January 1st, Atos updated its 2017 objectives: 

Revenue growth: Circa +9.5% at constant exchange rates (vs. circa +6% previously), above +2% organically (unchanged). 

Operating margin: Raised to circa 10.0% of revenue (vs. between 9.5% and 10.0% previously). 

Free cash flow: Operating margin conversion rate to free cash flow between 55% and 58% (unchanged). 

As a consequence, 2019 Ambition operating margin target is also raised to circa 11.0% of revenue (vs. between 10.5% and 11.0% previously). 

Q1 2017 revenue performance by Business Unit 

At constant scope and exchange rates                                

During the first quarter of 2017, revenue grew in all Business Units:

• in North America thanks to the ramp-up of several contracts in IDM, and to an increasing business in cybersecurity notably with existing large customers;
• in Germany which benefitted from the ramp-up of new contracts won last year in manufacturing and telco sectors. The Business Unit launched several projects in integration platforms and Industry 4.0 in the automotive sector and mobile applications in financial services;
• in United Kingdom & Ireland confirming the positive trend recorded in the second semester last year mainly coming from the ramp up of contracts in financial services, and new customers both in Big Data with HPC activities in the Public sector and in cybersecurity;
• in France where revenue was stable thanks to new contracts in IDM, Codex cognitive offerings in B&PS for Automotive and Energy customers and increasing in HPC activities;
• in Benelux & The Nordics, revenue stabilized in IDM thanks to additional volumes with existing large customers in Manufacturing. Revenue was also stable in B&PS thanks to new contracts in Telcos and in the Public sector. The business remained strong and increased in Big Data & Cybersecurity;
• in Other Business Units, the activity continued to grow in IDM particularly in Asia Pacific with higher volumes in Financial services and the ramp-up of contracts won last year in Manufacturing and in the Public sector with subsidiaries of European groups. B&PS also grew benefitting from new contracts and projects in Central Europe and in Asia Pacific;
• and in Worldline with the continued dynamic of Merchant Services, Financial Processing, and new activities in Mobility.