2009 first quarter revenue at EUR 1,294 million
- Revenue in very slight organic decrease of -0.6 per cent in line with the full year Group’s objectives;
- Order entries at EUR 1,347 million; up by +3 per cent;
- Book to bill ratio at 104 per cent;
- Net debt reduced at EUR 296 million compared to EUR 304 million at 31 December 2008.
Today, Atos Origin, a leading European IT services company, announces 2009 first quarter revenue at EUR 1 294 million representing a slight organic decrease of -0.6 per cent at same scope and exchange rates. This figure is in line with the annual objective of the Group, which is a slight decrease in revenue compared to 2008.
2008 proforma revenue excludes the change in scope related to the disposals made in 2008: Italy in Q1, AEMS Exchange in Q3, Thailand, Mexico and Technical Automation in The Netherlands in Q4, representing a total of EUR 84 million. It also excludes the impact of exchange rates mainly due to the British pound evolution compared to the Euro, representing a total of EUR 38 million.
During the first quarter of 2009, the Managed Operations activities (Managed Services, Atos Worldline and BPO) achieved revenue of EUR 721 million, representing an organic growth of +5.5 per cent compared to the first quarter of 2008.
Consulting and Systems Integration businesses decreased by -7.4 per cent with a revenue of EUR 573 million.
Revenue from recurring activities, Managed Operations and Application Management, represented 70 per cent of Group revenue compared to 68 per cent for the first quarter of 2008.
Revenue by Service Line
Consulting revenue reached EUR 72 million representing an organic decrease of -15.2 per cent compared to -2.4 per cent for the last quarter of 2008. In all countries, large customers delayed decisions on investment. The Group considers that the tough market conditions in Consulting should pursue this year and therefore has reinforced the actions initiated at the end of 2008 on staff costs.
Systems Integration revenue reached EUR 501 million in the first quarter 2009, representing an organic decrease of -6.2 per cent. The United Kingdom continued to report a satisfactory organic growth at +6 per cent and revenue in Germany and Central Europe was almost stable. The other geographical areas had a revenue decrease, particularly in The Netherlands due to a strong slowdown in demand, and in Spain due to the tough economic environment.
Managed Operations revenue reached EUR 721 million in the first quarter 2009, representing an organic growth of +5.5 per cent. This performance was achieved thanks to the contribution from the United Kingdom at a +11.2 per cent growth and Atos Worldline at a +6.8 per cent growth mainly in France and in Germany.
Revenue by geographical area
In France, revenue reached EUR 395 million up by +1.9 per cent. In Managed Operations activities, both Managed Services and Atos Worldline reported revenue growth of +9.8 per cent. This performance was achieved thanks to the ramp up of some contracts in the energy and telecommunication sectors, and for Atos Worldline in the finance and public sectors.
On the other hand, Systems Integration decreased by -5.1 per cent, which was essentially due to less revenue in the automotive sector. In Consulting, revenue decreased by EUR 3 million mainly in the banking sector.
In the United Kingdom, revenue reached EUR 211 million, an organic growth +8.0 per cent. This performance was achieved thanks to an increase in Systems Integration (+6.2 per cent) essentially in the public sector, and in Managed Operations (+11.2 per cent) both in public and private sectors with contracts with Brakes and Premier Foods. Consulting slightly decreased by EUR 1 million due to fewer projects in the finance sector.
The Netherlands revenue amounted to EUR 242 million, down by -8.5 per cent. Managed Operations revenue remained stable while Consulting and Systems Integration had a total decrease of EUR 21 million as a result of less demand and price pressure particularly in time and material activities. The Group has accelerated the implementation of actions to decrease the cost base both on indirect expenses and on staff costs.
In Germany and Central Europe, revenue was EUR 155 million and stable compared to the first quarter 2008. A stronger activity in the telecommunication sector both in Managed Operations and in Systems Integration compensated for a slowdown in banking and retail. Atos Worldline continued its development with double digit growth.
In the Rest of EMEA, Spain reported a decrease of -3.2 per cent mainly coming from Systems Integration. Belgium also had a decrease of -4.4 per cent in its revenue.
The Americas and Asia Pacific had revenue of respectively EUR 42 million and EUR 40 million close to the level reached in the first quarter 2008.
During the first quarter of 2009, the total order entries reached EUR 1 347 million, representing an organic growth of +3 per cent compared to the first quarter 2008. The book to bill ratio was 104 per cent compared to 101 per cent during the first quarter 2008.
The Group renewed key contracts in Managed Operations in France in the telecommunication sector, in the United Kingdom in the public sector, in insurance and energy, in The Netherlands in manufacturing, in Asia Pacific in the finance sector and in Germany in the banking sector through Atos Worldline. In Systems Integration, the Group signed large projects in France in the public sector, in The Netherlands in the finance sector, and in the United Kingdom in the public sector.
By service line, the book to bill ratio was 83 per cent in Consulting, 104 per cent in Systems Integration and 106 per cent in Managed Operations.
At 31 March 2009, the full backlog was EUR 7.5 billion up by +3.5 per cent compared to the level reached at 31 March 2008. This figure represents 1.4 years of revenue.
At 31 March 2009, the full pipeline weighted in accordance with the industry practice was EUR 2.9 billion up by +35 per cent compared to 31 March 2008.
The net debt was reduced at EUR 296 million at the end of March 2009 compared to EUR 304 million at the end of March 2008 and also EUR 304 million at the end of December 2008. The Group has been able to increase the level of collection of receivables and to reduce its capital intensity compared to the first quarter of 2008.
In the current tough economic environment, the Group’s priorities for 2009 are to improve the operational performance and the cash flow generation.
After three months of activity, the Group confirms its objectives for 2009 in revenue, operating margin and cash flow as communicated on 18 February 2009.
|26 May 2009||Annual General Meeting|
|29 July 2009||First half 2009 results|
|16 October 2009||Third quarter 2009 revenue|
Revenue organic growth is presented at constant scope and exchange rates
This document contains unaudited 2009 figures.
The document contains further forward-looking statements that involve risks and uncertainties concerning the Group's expected growth and profitability in the future. 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 2008 annual report filed with the Autorités des Marchés Financiers (AMF) on 9 April 2009 as a Document de Référence under the registration number: D09-251.
About Atos Origin
Atos Origin is an international information technology services company. Its business is turning client vision into results through the application of Consulting, Systems Integration and Managed Operations. The Company’s annual revenue is EUR 5.5 billion and it employs 50,000 professionals in 40 countries. Atos Origin is the Worldwide Information Technology Partner for the Olympic Games and has a client base of international blue-chip companies across all sectors.
Atos Origin is quoted on the Paris Eurolist Market and trades as Atos Origin, Atos Worldline and Atos Consulting.
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