Atos: Q1 2022
Q1 2022
Revenue growth at
constant currency:
-0.6%
Significant sequential improvement
vs. Q4 2021
Full-year objectives
confirmed
Atos capital markets
day: June
14, 2022
Paris, April
27, 2022: Atos, a global leader
in digital transformation, high-performance computing and
information technology infrastructure, today announces its revenue
of the first quarter of 2022.
Rodolphe Belmer, Chief
Executive Officer of Atos, declared: “Revenue in Q1 was in line
with our expectations, and fully consistent with the quarterly
sequence embedded in our 2022 guidance. Albeit negative, revenue
growth at constant currency improved sequentially, driven by an
improvement in our Tech Foundations business while Digital and
Cybersecurity remained well into positive
territory. Atos actively laid the foundations of its
transformation, with the swift adaptation of its governance under
the helm of a strengthened senior executive team, while continuing
to capitalize on its core expertise. Gartner recently ranked Atos
the new number one company in managed security services worldwide.
We also unveiled our new exascale-class BullSequana supercomputer,
bolstering our position as the undisputed European leader in
supercomputing.
We continued to press ahead with large-scale
recruitment in our growth activities and exceeded our Q1 target
with 8,200 gross new hires, mainly in offshore and nearshore
locations.
These are encouraging signs that the Group is
starting to reap the benefits of the energetic turnaround plan
engaged since the beginning of the year. I am confident that we are
taking the right steps to position Atos on a long-term value
creation path.”
Q1
2022
revenue:
-0.6% at
constant currency,
-2.4%
organically
Atos’ consolidated revenue was € 2,747 million
in Q1 2022, up +2.1% on a reported basis, and down -0.6% at
constant currency. On an organic basis, revenue decreased by -2.4%.
Q1 2022 showed a significant sequential improvement compared to Q4
2021, where revenue contracted -5.4% at constant currency and -6.9%
organically excluding the impact of the UK BPO contract
reassessment.
The acquisition of Cloudreach was finalized on
January 3rd, leading to full consolidation and reporting under the
Americas as well as Northern Europe & APAC regions since that
date. In total, acquisitions contributed +1.7% to the Group’s
revenue growth. Foreign exchange contributed +2.7%, mainly
reflecting the appreciation of the American Dollar and the Pound
Sterling against the Euro over the period.
Q1
2022 revenue
by Regional Business Unit
Under Atos’ new simplified governance, regional
business units have been modified. The table below presents pro
forma figures for Q1 2021 at constant currency. A reconciliation
between former regional business units and the new ones is
presented in the appendix of this press release.
In € million |
Q1 2022 |
Q1 2021* |
Change at constant currency |
Americas |
647 |
637 |
+1.5% |
Northern Europe & APAC |
821 |
841 |
-2.3% |
Central Europe |
617 |
629 |
-1.8% |
Southern Europe |
601 |
607 |
-1.0% |
Rest of the World |
60 |
51 |
+18.3% |
Total |
2,747 |
2,765 |
-0.6% |
* At constant
currency |
|
|
|
Americas revenue grew by +1.5%
at constant currency, driven by the contribution of recent
acquisitions in multi-cloud services (Cloudreach) and in product
lifecycle management (Processia). Growth in Digital activities, in
particular with the ramp-up of a large contract in Healthcare &
Life Sciences, was offset by a decrease in Unified Communication
& Collaboration activities.
Northern Europe
& APAC revenue decreased by
-2.3% at constant currency. Strong business growth in Manufacturing
and Healthcare & Life Sciences was offset by a decrease in
other industries, especially Telecom, Media & Technology, which
suffered from a volume reduction in its “lab as a service”
activity, and in Financial Services & Insurance, following the
reassessment of the large BPO contract in Q4 2021, which effect was
mitigated by the ramp up of other contracts.
Central Europe revenue
decreased by -1.8% at constant currency, driven by a significant
decrease in Telecom, Media & Technology due to the ramp down of
contracts with two large telecom customers. Most of the other
industries delivered growth, in particular Resources & Services
with the start of new contracts for a global foodservice retailer
and a leading logistic company.
Southern Europe revenue
decreased by -1.0% at constant currency. The situation was
contrasted across industries, with strong growth in Healthcare
& Life Sciences’ digital activities, as well as in
Manufacturing, driven by the ramp-up of a large automotive contract
and the catch up on High-Performance Computing deals that slipped
from 2021 to 2022. Conversely, revenue decreased in Public Sector
& Defense due to lower High-Performance Computing sales, in
Financial Services & Insurance due to the termination of a
contract with a major Spanish bank, and in Telecom, Media &
Technology, due to lower hardware and software resale.
Rest of the World revenue grew
strongly, by +18.3% at constant currency, supported by business
related to the Beijing Olympics and a strong growth across most
industries.
Q1
2022 revenue
by Industry
The situation was contrasted across Industries
with Manufacturing, Resources & Services and Healthcare &
Lifesciences recording growth, while revenue decreased in Financial
Services & Insurance, Public Sector & Defense and Telecom,
Media & Technology.
In € million |
Q1 2022 |
Q1 2021* |
Change at constant currency |
Manufacturing |
521 |
494 |
+5.6% |
Financial Services & Insurance |
539 |
563 |
-4.3% |
Public Sector & Defense |
573 |
589 |
-2.7% |
Telecom, Media & Technology |
347 |
386 |
-10.1% |
Resources & Services |
412 |
406 |
+1.6% |
Healthcare & Life Sciences |
355 |
327 |
+8.4% |
Total |
2,747 |
2,765 |
-0.6% |
* At constant
currency |
|
|
|
Manufacturing revenue grew by
+5.6% at constant currency, rebounding from a low Q1 2021,
supported by the acquisition of Processia in June 2021 and by
increased volumes in the cloud computing sector.
Financial Services &
Insurance revenue decreased by -4.3% at constant currency,
following the reassessment of the large BPO contract conducted in
Q4 2021, and the termination of a contract with a major Spanish
Bank.
Public Sector & Defense
revenue decreased by -2.7% at constant currency, due to lower
High-Performance Computing sales and the ramp-down of digital
workplace projects with a US State.
In Telecom, Media &
Technology, revenue contracted by -10.1% at constant
currency, driven by a volume reduction in the “lab as a service”
activity, as well as contracts ramp-down in telecoms.
Resources & Services
revenue grew by +1.6% at constant currency as solid growth in
transport & logistics compensated a decrease in the energy
sector.
Healthcare & Life Sciences
posted a strong +8.4% growth at constant currency, with solid
growth in most regions.
Commercial activity
Order entry
was
€ 2.0
billion in Q1 2022, representing a book to bill
ratio of 72%, compared to 96% in Q1 2021. This low level is not
representative of revenue trends expected for the balance of the
year, as it is primarily the reflect of (i) the timing of contract
renewals, as significant renewals took place in prior quarters,
including in Q1 2021 and (ii) a decrease in the average duration of
new contracts.
Full backlog was
€ 23.3
billion, decreasing by € 0.7 billion at constant
currency compared to the end of 2021 and representing 2.1 years of
revenue. The full qualified pipeline reached
€ 6.9
billion, broadly stable compared to the end of
2021 at constant currency.
Human resources
Total headcount stood at
111,355
at the end of March 2022, up +2.0% compared to 109,135 at the end
of December 2021 (+1.4% organically).
In the first quarter of 2022, Atos
hired
8,234
new employees (gross) mainly in
Digital and BDS, and predominantly in offshore and nearshore
countries, and welcomed Cloudreach’s 742
employees.
2022 full-year
objectives confirmed
Atos confirms its 2022 full-year objectives and
reiterates that its performance will be back-end loaded towards the
second half of the year.
While the first half of the year will be
impacted by the continued decline in classic IT services, combined
with personnel cost inflation and supply chain tensions, we target
an improvement in the second half, with revenue growth at constant
currency turning positive, and an uptick in operating
margin. This improvement will be the reflect of performance
optimization actions already implemented, an easier comparison
basis and a more favorable revenue mix.
Free cash flow should improve compared to 2021,
and will largely depend on operating margin delivery and further
working capital fluctuations.
For the full-year, Atos expects:
- Revenue growth
at constant currency of -0.5% to +1.5%;
- Operating margin
of 3% to 5%;
- Free cash flow
between €-150 million and € 200 million.
Atos confirmed
managed exit of Russia-based operations
Atos condemns the war in Ukraine. On April 5,
the Group confirmed the managed exit of its Russia-based
operations, that generated c. 0.4% of Group revenue in 2021. Atos
delivers critical digital services to some of its global clients
out of Russia.
The feasibility of exiting Russia has required
significant planning in terms of implications for business
operations and for Atos employees based there. Atos is focused on
managing the impact on its employees as part of an orderly exit. In
support of its global clients, the Group is moving services
currently delivered from Russia to other countries, including India
and Turkey.
Save the date: Atos
Capital Markets Day
Atos invites investors and analysts to
participate in its capital markets day, which will be held in Paris
on June 14, 2022, and where senior management will present the
Group’s new strategic plan.
Venue, time and detailed agenda will be
communicated nearer the date.
Analyst and investor
conference call
Atos Management invites analysts and investors
to a conference call on the Group 2022 first quarter revenue, on
Wednesday, April
27, 2022 at 08:00 am (CET –
Paris) chaired by Rodolphe Belmer, CEO.
You can join the webcast of the
conference:
- via the following link:
https://edge.media-server.com/mmc/p/pkkboz2k
- by telephone, upon registration at
least 10 minutes prior to the starting time, using the following
link:
http://emea.directeventreg.com/registration/6566226
Upon registration, you will be provided with
Participant Dial In Numbers, a Direct Event Passcode and a unique
Registrant ID. Call reminders will also be sent via email the day
prior to the event.During the 10 minutes prior to the beginning of
the call, you will need to use the conference access information
provided in the email received upon registration.
After the conference, a replay of the webcast
will be available on atos.net, in the Investors section.
Forthcoming events
May 18, 2022
Annual
General MeetingJune 14,
2022 Capital
Markets Day
July 27, 2022 (Before Market Opening)
First
semester 2022 results
Contacts
Investor
Relations: Thomas
Guillois +33 6 21 34
36
62 thomas.guillois@atos.net
Media: Martin
Bovo
+33
6 14 46 79
94 martin.bovo@atos.net
Appendix
Revenue at constant scope and exchange
rates reconciliation
In € million |
Q1 2022 |
Q1 2021 |
% change |
Statutory revenue |
2,747 |
2,692 |
+2.1% |
Exchange rates effect |
|
73 |
|
|
|
|
|
Revenue at constant exchange rates |
2,747 |
2,765 |
-0.6% |
|
|
|
|
Scope effect |
|
46 |
|
Exchange rates effect on acquired/disposed perimeters |
|
2 |
|
Revenue at constant scope and exchange rates |
2,747 |
2,813 |
-2.4% |
Exchange rates movements contributed positively
to revenue growth, for €+73 million. They mostly came from the
appreciation of the American Dollar and the Pound Sterling against
the Euro over the period.
Scope effect (including exchange rates effect on
acquired/ disposed perimeters) amounted to €+48 million. It related
to acquisitions made in 2021 and in Q1 2022 (SEC Consult, Ipsotek,
Infidem, Motiv, Profit4SF, Processia, Nimbix, Ideal GRP, Visual BI,
Cryptovision, AppCentrica, DataSentics,
Cloudreach).
Q1 2021
published revenue: reconciliation between new Regional
Business Units and former ones
In € million |
Q1 2021 revenue* |
Americas |
Northern Europe and APAC |
Central Europe |
Southern Europe |
Rest of the World |
North America |
564 |
564 |
|
|
|
|
Northern Europe |
730 |
|
714 |
17 |
|
|
Central Europe |
609 |
|
|
609 |
|
|
Southern Europe |
607 |
|
|
|
607 |
|
Growing Markets |
181 |
31 |
99 |
|
|
51 |
Total |
2,692 |
595 |
813 |
626 |
607 |
51 |
* Published |
|
|
|
|
|
|
About Atos
Atos is a global leader in digital
transformation with 111,000 employees and annual revenue of c. € 11
billion. European number one in cybersecurity, cloud and high
performance computing, the Group provides tailored end-to-end
solutions for all industries in 71 countries. A pioneer in
decarbonization services and products, Atos is committed to a
secure and decarbonized digital for its clients. Atos is an SE
(Societas Europaea), listed on Euronext Paris and included in the
CAC 40 ESG and Next 20 indexes.
The purpose of Atos is to help design the future
of the information space. Its expertise and services support the
development of knowledge, education and research in a multicultural
approach and contribute to the development of scientific and
technological excellence. Across the world, the Group enables its
customers and employees, and members of societies at large to live,
work and develop sustainably, in a safe and secure information
space.
Disclaimers
This document contains forward-looking
statements that involve risks and uncertainties, including
references, concerning the Group's expected growth and
profitability in the future which may significantly impact the
expected performance indicated in the forward-looking statements.
These risks and uncertainties are linked to factors out of the
control of the Company and not precisely estimated, such as market
conditions or competitor's behaviors. Any forward-looking
statements made in this document are statements about Atos’s
beliefs and expectations and should be evaluated as such.
Forward-looking statements include statements that may relate to
Atos’s plans, objectives, strategies, goals, future events, future
revenues or synergies, or performance, and other information that
is not historical information. Actual events or results may differ
from those described in this document due to a number of risks and
uncertainties that are described within the 2021 Universal
Registration Document filed with the Autorité des Marchés
Financiers (AMF) on April 6, 2022 under the registration number
D.22-0247. Atos does not undertake, and specifically disclaims, any
obligation or responsibility to update or amend any of the
information above except as otherwise required by law. This
document does not contain or constitute an offer of Atos’s shares
for sale or an invitation or inducement to invest in Atos’s shares
in France, the United States of America or any other
jurisdiction.
Revenue organic growth is presented at constant
scope and exchange rates.
Industries include
Manufacturing (Aerospace, Automotive, Chemicals,
Consumer Packaged Goods (Food & Beverage), Discrete
Manufacturing, Process Industries, Services and Siemens),
Financial Services & Insurance (Insurance,
Banking & Financial Services, and Business Transformation
Services), Public Sector & Defense (Defense,
Education, Extraterritorial Organizations, Public Administration,
Public Community Services and Major Events), Telecom, Media
& Technology (High Tech & Engineering, Media, and
Telecom), Resources & Services (Energy,
Retail, Transportation & Hospitality, and Utilities) and
Healthcare & Life Sciences (Healthcare and
Pharmaceutical).
Regional Business Units
include Americas including North
America (USA, Canada, Guatemala and Mexico) and South America
(Argentina, Brazil, Chile, Colombia, Uruguay, and
Peru), Northern Europe and
APAC including Northern Europe (United Kingdom &
Ireland, Belgium, Denmark, Estonia, Belarus, Finland, Lithuania,
Luxembourg, The Netherlands and Sweden) and Asia-Pacific
(Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand,
Philippines, Singapore, Taiwan, and Thailand), Central
Europe (Germany, Austria, Bulgaria, Bosnia, Croatia,
Czech Republic, Greece, Hungary, Israel, Poland, Romania, Russia,
Serbia, Slovenia, Slovakia, and Switzerland), Southern
Europe (France, Andorra, Spain, Portugal, and Italy)
and Rest of the World including Middle
East & Africa (Algeria, Benin, Burkina Faso, Egypt, Gabon,
Ivory Coast, Kenya, Kingdom of Saudi Arabia, Madagascar, Mali,
Mauritius, Morocco, Qatar, Senegal, South Africa, Tunisia, Turkey
and UAE), Major Events and Global Delivery Centers.
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