DUBLIN: French ICT group Atos reported revenues of EUR 3.38 billion for the three months to December, up by 2.3 percent organically (+2.5% in Q3). The company said that its order entry remained healthy in the quarter, representing a book to bill ratio of 123 percent. Having met its full-year guidance, it has set the bar marginally higher for 2018, with improved targets in line with its ‘2019 Ambition’ 3-year strategy.
Atos’ main objectives for the current year are organic growth of 2-3 percent in group revenue, an operating margin representing 10.5-11 percent of revenue and an operating margin conversion into free cash flow of around 60 percent. CEO Thierry Breton said that the company started 2018 with a stronger balance sheet and enhanced stability, with more than 75 percent of group revenues linked to multi-year contracts.
All the group’s four main divisions continued to achieve positive organic growth rates in the quarter. Its core business, Infrastructure & Data Management, posted revenue of EUR 1.84 billion, up 0.8 percent year-on-year (+0.9% in Q3). Revenues at the Business & Platform Solutions division progressed at a slightly faster pace (+2.7% from 2.2% in Q3), partly offsetting slower growth in Big Data & Cybersecurity (+5.2% from 13.8% in Q3).
Looking at the geographical businesses, Germany achieved the best organic growth among Atos’ key markets (+2.8%), consolidating its position as the group’s leading revenue generating unit (EUR 610 million). UK & Ireland remained in negative territory (-1.1%), and France also reported a small drop in revenue (-1.2%), after a good performance in the previous quarter.
