Third quarter 2011 revenue
Revenue stable at EUR 2,093 million (-0.3 per cent organically)
Book to bill ratio at 96 per cent
Strong backlog at EUR 14 billion, representing 1.6 years of revenue
Net debt at EUR 234 million
Integration of SIS delivering expected synergies
2011 Objectives confirmed.
Paris, 25 October 2011 - Atos, an international information technology services company, today announced its revenue for the third quarter of 2011. Revenue was EUR 2,093 million, representing -0.3 per cent compared to the third quarter of 2010. Net debt stood at EUR 234 million at the end of September 2011.
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 per cent 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.”
Revenue constant scope and exchange rates reconciliation
In EUR millionQ3 2011Q3 2010% growth
Statutory revenue 2,0931,21072.9%
Scope impact 930
Exchange rates impact -41
Revenue at constant scope and exchange rates 2,0932,099-0.3%
Representing 48 per cent of the Group, Managed Services revenue was EUR 1,007 million, up +2.1 per cent 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 per cent of the Group, revenue declined by -4.1 per cent 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 per cent of the Group, Hi-Tech Transactional Services & Specialized Businesses (HTTS & SB) revenue reached EUR 421 million, up +2.3 per cent compared to the third quarter of 2010. HTTS business grew by +3.5 per cent, of which Payments +2.7 per cent. Revenue for BPO was up +4.0 per cent.
The decline in other Specialized Businesses was -4.8 per cent (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 per cent of the Group, revenue was EUR 136 million, a decline of -9.2 per cent 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.
Net debt and free cash flow
Net debt as of 30 September 2011 was EUR 234 million. Thanks to a reduction in restructuring and rationalization, and a strong monitoring of working capital, the free cash flow during the third quarter 2011 was EUR 36 million compared to EUR 9 million for the third quarter of 2010. For the first nine months of 2011, the Group generated a free cash flow of EUR 119 million, in line with its annual objective of EUR 170 million.
The net debt at the end of 2011 is expected around EUR 183 million compared to EUR 139 million at the end of 2010.
2011 Objectives
The following objectives relate to the year 2011 which includes 12 months of Atos and 6 months of SIS acquired on 1st July 2011.
Operating margin
The Group confirms its full year guidance at 6.2 per cent operating margin rate.
Revenue
The Group confirms its ambition to reach a statutory revenue for 2011 around EUR 6.8 billion.
Free cash flow
The Group confirms the guidance for the free cash flow to be around EUR 170 million in 2011.
A webcast in English will be held today 25 October 2011 at 9:00 am, CET time, accessible on atos.net |
