Paris: French IT consultancy Atos has reported a dip in first quarter revenues, on the back of a steep drop in consulting business and continued weakness in its home market.
- Revenues down 1.2 percent to Eur 2.117 billion
- Consulting revenues down 9 percent
- France and Iberia down over 10 percent
- UK and North America show strong growth
Thierry Breton, Chairman and CEO at Atos said, "Our revenue in the first quarter of 2013 was in line with our expectations. We continue to apply a rigorous discipline to achieve our full year targets, increasing operating margin and free cash flow as guided.
"I am glad with the progress of the carve-out of Atos payment and merchant transactional activities which I anticipate to be completed by mid-year. Our innovative solutions position the new entity in the fast growing area of remote payment in addition to our core acquiring and processing businesses."
The firm reported revenue of EUR 2,117 million, representing what it euphemistically calls "an organic evolution" of -1.2 percent, compared to the first quarter of 2012.
Its four largest business units by geography were the UK & Ireland and Germany with 19 percent of total revenue each, and Benelux and France with 11 percent each.
The revenue performance was driven mostly by the ramp-up of large contracts won in 2012, particularly in North America (+15.0 percent) and in the United-Kingdom (+7.3 percent), and by a continued increase of Atos Worldline (+2.3 percent). In contrast Iberia was down by -10.3 percent, suffering from the continuously difficult economic situation. In France, the first quarter of the year was particularly tough, impacted by a decrease in volumes and fewer working days.
In terms of service lines, Atos saw modest organic growth in HTTS & Specialized Businesses at +3.1 percent and in Managed Services at +0.7 percent. Cyclical activities declined during the first quarter of the year by -6.9 percent with Systems Integration at -6.1 percent and Consulting & Technology Services at -9.3 percent.