ATOS : Third quarter 2016 revenue
(Thomson Reuters ONE) -
Continued growth momentum
Revenue at ? 2,777 million
+6.3% at constant exchange rates
+1.8% organically
Order entry at ? 2,845 million
+12% year-on-year
Book to bill ratio at 102%
All 2016 objectives confirmed
Bezons, October 20, 2016 - Atos, a global leader in digital services, today
announces its revenue for the third quarter of 2016. Revenue was ? 2,777
million, up +1.8% organically and +6.3% at constant exchange rates. Order entry
was ? 2,845 million leading to a record book to bill ratio for a Q3 at 102%.
Over the first nine months of the year, revenue growth reached +1.7% organically
and +13.8% at constant exchange rates.
Thierry Breton, Chairman and CEO said: "During the last quarter, the Group
continued to grow organically in all of its businesses with in particular a
solid performance in the UK post Brexit and in North America, as well as in
continental Europe. We continue to experience dynamic commercial activity
delivering a high level of new bookings, in particular with strong momentum in
defense and security. This demonstrates the relevance of our infrastructure and
data management business model and makes us confident for the rest of the year.
During our Investor Day on November 8, we will present our ambitions for the
Group for the next three-year plan."
Q3 2016 revenue performance by Service Line
In ? million Q3 2016 Q3 2015* % organic
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Managed Services 1,603 1,583 +1.2%
Consulting & Systems Integration 757 750 +1.0%
Big Data & Cybersecurity 134 112 +19.1%
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Total IT Services 2,494 2,446 +2.0%
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Worldline 283 283 +0.0%
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TOTAL GROUP 2,777 2,729 +1.8%
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* At constant scope and exchange rates
In Managed Services, revenue was ? 1,603 million, +1.2% compared to the third
quarter of 2015 at constant scope and exchange rates. Growth was led by the
Public & Health, and Telco, Media & Utilities sectors, more particularly in the
UK thanks to higher volumes and new contracts. Revenue also grew in the
Manufacturing sector, notably with IT landscape transformation contracts through
automation and migration to Orchestrated Hybrid Cloud, most particularly in the
US.
Over the first nine months of the year, the Service Line grew by +0.8% as the
Group continues to successfully drive the transition of its customers to hybrid
cloud infrastructures resulting in increased volumes and market share gains
through new contracts.
In Consulting & Systems Integration revenue in the third quarter was ? 757
million, up +1.0% at constant scope and exchange rates. Growth materialized in
the manufacturing sector in most of the geographies, in particular with
automotive and aeronautical clients, compensating for less projects in Financial
Services. Revenue was up in the Public sector thanks to projects in Germany and
the contribution of "Other Business Units".
Over the first nine months, organic growth continues to improve and reached
+0.7%.
Revenue increase accelerated in Big Data & Cybersecurity, up +19.1% organically
to reach ? 134 million in the third quarter of 2016. The activity was very
strong in both Big Data and Cybersecurity. Growth was led by the Public sector,
in particular with Mission Critical Systems in France and HPC in Benelux. The
Telco, Media & Utilities sector was also fast growing, with HPC deliveries in
France and Cybersecurity sales in Germany. The Service Line had a strong start
in North America, most particularly for Cybersecurity solutions embedded in new
Managed Services contracts.
Year-to-date, revenue grew by +14.7% as a result of the strategy to cross-sell
the offerings on top of the traditional research and defense sectors and with
the international development beyond France and Germany.
From a contributive perspective to Atos, Worldline revenue was ? 283 million,
stable organically as expected. The two first Business Lines grew over +4%.
Merchant Services was driven by volume increase in Commercial acquiring and a
strong growth in the Payment terminals business while Financial Processing
benefited from high Issuing volumes in Benelux and from a strong Acquiring
activity in France and India. The third Business Line, Mobility & e-
Transactional Services, grew double-digit in e-Ticketing and e-Consumer &
Mobility but was, as anticipated, impacted by the termination of both the VOSA
contract in the UK which occurred at end of Q3 2015 and the Radar contract in
France from mid-June 2016.
The Service Line grew by +3.9% over the first nine months of the year. From Q4
2016, Worldline consolidates additional revenue from Equens, Paysquare, and
Komerçni Banka Smartpay.
A detailed presentation of Worldline 2016 third quarter revenue is available at
worldline.com, in the investors section.
Q3 2016 revenue performance by Business Unit
In ? million Q3 2016 Q3 2015* % organic
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North America 501 476 +5.2%
Germany 491 473 +3.7%
United-Kingdom & Ireland 426 409 +4.2%
France 373 364 +2.4%
Benelux & The Nordics 239 255 -6.2%
Other Business Units 463 468 -0.9%
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Total IT Services 2,494 2,446 +2.0%
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Worldline 283 283 +0.0%
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TOTAL GROUP 2,777 2,729 +1.8%
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* At constant scope and exchange rates
During the third quarter of 2016, revenue grew in most of the large Business
Units:
* in North America thanks to increased volumes and new contracts with private
cloud components and the strong start of Big Data & Cybersecurity. The
acquisition of Anthelio was completed at the end of September to drive
future growth in the healthcare sector,
* in Germany, in Consulting & Systems Integration where the recovery plan
materialized in both new orders and revenue growth, and in Managed Services
with additional business driving growth;
* in United Kingdom & Ireland, led by a strong activity in the Public and
Telco & Media sectors and thanks to the low exposure to the financial
sector;
* in France as a result of the continuous momentum of Big Data &
Cybersecurity, and the successful recovery in Managed Services;
During the third quarter of the year, revenue in Worldline was stable thanks to
the continued dynamic of its core payment businesses compensating for the effect
of the two contracts terminated last year. Revenue was almost stable in "Other
Business Units" thanks to a strong growth in Asia Pacific and South America
compensating for less revenue in Central & Eastern Europe. In Benelux & The
Nordics, the new management team appointed in Q2 is actively focused on the
Business Unit recovery and has already won contracts leading to a 121% book-to-
bill in Q3.
Commercial activity
During the third quarter of 2016, the Group continued to benefit from its
commercial momentum and recorded order entry of ? 2,845 million, representing a
book to bill ratio of 102%.
The commercial activity was particularly strong in the UK leading to a 128%
book-to-bill in Q3 with two major signatures, Aegon in Financial Services and
Ministry of Defence in the Public sector.
By Service Line, Managed Services and Big Data & Cybersecurity recorded a high
level of signatures leading to respective book to bill ratio of 112% and 107%.
Book to bill was 95% in Consulting & Systems Integration. In Q3 2016, large
contracts were signed in Managed Services, such as Aegon in the UK and
Rheinmetall in Germany. Major contracts signed in Consulting & Systems
Integration were Ministry of Defence in the UK and La Poste in France, while Big
Data & Cybersecurity signed new deals in High Performance Computing and
Cybersecurity related to large Managed Services contracts. In addition to
contract renewals, Worldline signed contracts with new clients, notably with
Pizza Hut for pan-European e-acquiring services and with a large French health
insurer for a Contact & Consumer Cloud solution.
The full backlog at the end of September 2016 totaled to ? 19.3 billion,
representing 1.7 year of revenue. The full qualified pipeline was ? 6.4 billion,
compared to ? 6.2 billion at the end of 2015 and representing 6.7 months of
revenue.
Human resources
The total headcount of the Group was 96,396 at the end of September 2016
(including Unify Software & Platforms). The increase of +5.6% of the Group
workforce compared to 91,322 at the end of December 2015 was mainly due to the
circa 5,200 staff who joined the Group from Unify. On October 1(st), circa
3,000 staff joined the Group from Anthelio, Equens, Paysquare, and Komerçni
Banka Smartpay, leading to a total Group workforce of circa 99,500 staff.
2016 objectives
The Group confirms all its objectives for 2016 stated in the July 26, 2016
release, i.e.:
Revenue: Organic growth of +1.5% to +2.0%. Growth at constant exchange rates
above +12% (vs. above +11% previously).
Operating margin: Between 9.2% and 9.5% of revenue.
Free cash flow: Above ? 550 million.
The figures above include Unify Managed Services from February 1(st), 2016 and
Equens, Paysquare, Komerçni Banka Smartpay, and Anthelio contributions from
October 1(st), 2016.
Appendix
Revenue and operating margin at constant scope and exchange rates reconciliation
In ? million Q3 2016 Q3 2015 % change
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Statutory revenue 2,777 2,708 +2.5%
Exchange rates effect -95
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Revenue at constant exchange rates 2,777 2,613 +6.3%
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Scope effect 117
Exchange rates effect on acquired/disposed perimeters -1
Revenue at constant scope and exchange rates 2,777 2,729 +1.8%
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Exchange rates effect mainly came from the British pound (-9% year-on-year) and
the Argentine peso (-38%). Scope effects amounted to ?+117 million coming from
the acquisition of Unify (?+152 million), the reduction of Xerox ITO acquired
scope compensated by a purchase price decrease (?-23 million), and the sale of
the Occupational Health business (?-11 million).
Q3 2016 revenue performance by Market
In ? million Q3 2016 Q3 2015* % organic
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Manufacturing, Retail & Transportation 980 966 +1.5%
Public & Health 744 726 +2.5%
Telcos, Media & Utilities 581 558 +4.1%
Financial Services 472 479 -1.4%
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TOTAL GROUP 2,777 2,729 +1.8%
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* At constant scope and exchange rates
9M YTD 2016 revenue performance by Service Line
In ? million 9M 2016 9M 2015* % organic
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Managed Services 4,824 4,787 +0.8%
Consulting & Systems Integration 2,341 2,326 +0.7%
Big Data & Cybersecurity 436 380 +14.7%
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Total IT Services 7,601 7,493 +1.5%
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Worldline 872 839 +3.9%
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TOTAL GROUP 8,474 8,332 +1.7%
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* At constant scope and exchange rates
9M YTD 2016 revenue performance by Business Unit
In ? million 9M 2016 9M 2015* % organic
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North America 1,491 1,425 +4.7%
Germany 1,420 1,359 +4.5%
United-Kingdom & Ireland 1,344 1,371 -2.0%
France 1,220 1,183 +3.1%
Benelux & The Nordics 732 776 -5.7%
Other Business Units 1,395 1,378 +1.2%
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Total IT Services 7,601 7,493 +1.5%
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Worldline 872 839 +3.9%
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TOTAL GROUP 8,474 8,332 +1.7%
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* At constant scope and exchange rates
9M YTD 2016 revenue performance by Market
In ? million 9M 2016 9M 2015* % organic
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Manufacturing, Retail & Transportation 2,980 2,948 +1.1%
Public & Health 2,383 2,258 +5.5%
Telcos, Media & Utilities 1,706 1,669 +2.2%
Financial Services 1,405 1,457 -3.6%
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TOTAL GROUP 8,474 8,332 +1.7%
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* At constant scope and exchange rates
Conference call
Today, Thursday, October 20, 2016, Thierry Breton; Chairman and CEO, Elie
Girard, Chief Financial Officer, and Patrick Adiba, Chief Commercial Officer,
will comment on Atos' third quarter of 2016 revenue and answer questions from
the financial community during a conference call in English starting at 8:00 am
(CET - Paris).
You can join the webcast of the conference:
* on atos.net, in the Investors section
* by smartphones or tablets through the scan of:
* by telephone, please dial in 5-10 minutes prior to the start time
using the number / Conference ID below:
France +33 1 76 77 22 30 code 1702312
UK +44 20 3427 1916 code 1702312
US +1646 254 3361 code 1702312
Forthcoming events
November 08, 2016: 2016 Investor Day
February 22, 2017: 2016 annual results
Contacts
Media:
Terence Zakka +33 1 73 26 40 76
terence.zakka(at)atos.net
Investor Relations:
Gilles Arditti +33 1 73 26 00 66
gilles.arditti(at)atos.net
Benoit d'Amécourt +33 1 73 26 02 27
benoit.damecourt(at)atos.net
About Atos
Atos SE (Societas Europaea) is a leader in digital services with pro forma
annual revenue of circa ? 12 billion and circa 100,000 employees in 72
countries. Serving a global client base, the Group provides Consulting & Systems
Integration services, Managed Services & BPO, Cloud operations, Big Data &
Cybersecurity solutions, as well as transactional services through Worldline,
the European leader in the payments and transactional services industry. With
its deep technology expertise and industry knowledge, the Group works with
clients across different business sectors: Defense, Financial Services, Health,
Manufacturing, Media, Utilities, Public sector, Retail, Telecommunications, and
Transportation.
Atos is focused on business technology that powers progress and helps
organizations to create their firm of the future. The Group is the Worldwide
Information Technology Partner for the Olympic & Paralympic Games and is listed
on the Euronext Paris market. Atos operates under the brands Atos, Atos
Consulting, Atos Worldgrid, Bull, Canopy, Unify and Worldline.
For more information, visit: atos.net.
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 competitors behaviors. Any
forward-looking statements made in this document are statements about Atos'
beliefs and expectations and should be evaluated as such. Forward-looking
statements include statements that may relate to Atos' 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 2015 Registration Document
filed with the Autorité des Marchés Financiers (AMF) on April 7, 2016 under the
registration number: D.16-0300 and its update filed with the Autorité des
Marchés Financiers (AMF) on August 4, 2016 under the registration number: D.16-
0300-A01. 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' shares for sale or an invitation or inducement to invest in Atos'
shares in France, the United States of America or any other jurisdiction.
Revenue organic growth is presented at constant scope and exchange rates.
Operating margin is presented as defined in the 2015 Registration Document.
Business Units include Germany, France, United-Kingdom & Ireland, Benelux & The
Nordics (BTN: The Netherlands, Belgium, Luxembourg, Denmark, Finland, Sweden,
and Estonia), Worldline, North America (NAM: USA, Canada, and Mexico), and Other
Business Units including Central & Eastern Europe (CEE: Austria, Bulgaria,
Croatia, Czech Republic, Greece, Hungary, Italy, Lithuania, Poland, Romania,
Russia, Serbia, Slovakia, Slovenia, Switzerland and Turkey), Iberia (Spain,
Portugal, and Andorra), Asia-Pacific (APAC: Australia, China, Hong Kong, India,
Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan
and Thailand), South America (SAM: Brazil, Argentina, Colombia, Chile,
Guatemala, Jamaica, Peru, and Uruguay), Middle East & Africa (MEA: Algeria,
Benin, Burkina Faso, Egypt, Gabon, Israel, Ivory Coast, Lebanon, Madagascar,
Mali, Mauritius, Morocco, Qatar, Saudi Arabia, Senegal, South Africa and UAE),
Major Events, and Cloud & Enterprise Software.
Atos decided, as early as the acquisition date, to retain only part of the
activity of Unify. As a result, the Software & Platforms business, along with
the customers and the countries that were planned to be managed through indirect
channels, have been accounted for as discontinued operations and are in the
process of being physically carved-out to facilitate the disposal of this
activity. Therefore, the 2016 and 2015 pro forma consolidated external revenue
and operating margin reflect the retained scope of Unify only.
Click here for the pdf version:
http://hugin.info/143359/R/2050056/766758.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: ATOS via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 20.10.2016 - 07:01 Uhr
Sprache: Deutsch
News-ID 501590
Anzahl Zeichen: 25875
contact information:
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Bezons
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