Paris: French IT services company Atos enjoyed a big hike in net income in the first six months of the year on a marginal fall in revenue.
- Net income was EUR 116 million, up 14 percent
- Revenue was EUR 4,290 million, down 0.6 percent; stable in the second quarter
- Operating margin strongly improved by 15 percent: EUR 279 million at 6.5 percent
- Free cash flow: EUR 158 million, up 24 percent; net cash: EUR 359 million
- Book to bill ratio at 106 percent led by strong order entry in the second quarter
- Group expects "slight" increase in full year revenues
- Atos Worldline carve-out complete
Atos said that its revenue of EUR 4,290 million represented a "limited organic decline" of 0.6 percent. Revenue in the biggest business unit, the UK, grew by 6 percent, but fell in most other European territories with Germany, France and Iberia seeing falls of 4.9 percent, 9.5 percent and 9.7 percent respectively.
Thierry Breton, Chairman and CEO at Atos said, "As a result of a continued solid execution of our strategy, we achieved our targets in H1 2013. The performance was driven by our transformation initiatives, leading to an operating margin improvement by +90 basis points year-on-year. We continued investing in innovations in key areas such as smart mobility solutions, Cloud, enterprise social network, and of course payments. The objective is to reach new clients and to expand into new markets. As planned, we completed the carve-out of Atos payment activities with Worldline, our new subsidiary fully up and running. Finally, in an environment that remains volatile, we confirm our guidance for 2013."
Atos also confirmed the completion of the carve-out process announced last February of its global payment and transactional activities, Atos Worldline.
Formed on July 1 with 2012 pro forma revenues of EUR 1,068 million, Worldline will operate under its own brand in 17 countries with a global reach and offices across Asia and Latin America. Worldline employs over 7,100 employees worldwide.
Thierry Breton said, "We are proud to have launched Worldline operations, the Atos subsidiary for e-payment transactional services. It is a new step forward that will give us the strategic and financial flexibility to expand Worldline's product offerings across the entire transaction value chain and develop strong alliances and partnerships worldwide".
Gilles Grapinet, Atos Senior Executive Vice President Global functions, was appointed Chief Executive Officer of Worldline; Marc-Henri Desportes, former Executive Vice President of Hi-Tech Transactional Services & Specialized Businesses was appointed General Manager of Worldline.