March 6 (Reuters) - French IT services company Atos reported full-year revenue slightly above 8 billion euros ($9.3 billion) on Friday, meeting its target and reflecting progress in its turnaround
Atos Achieves €8bn Revenue Post-Restructuring, Eyes Growth After Workforce Cut
Atos Reports 2023 Financial Results and Strategic Outlook
March 6 (Reuters) - French IT services company Atos reported full-year revenue slightly above 8 billion euros ($9.3 billion) on Friday, meeting its target and reflecting progress in its turnaround following significant financial restructuring.
The company slashed its headcount by 19% to 63,193 employees as part of its "Genesis" restructuring programme aimed at restoring profitability after years of turmoil.
Business Unit Performance
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Core Atos Business Unit
Revenue in the core Atos business unit declined 16.2% organically to 6.96 billion euros despite winning a notable cybersecurity contract with the European Commission during the year.
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Eviden Division
Sales in the Eviden division grew 6.7% to 1.04 billion euros, driven by the delivery of the Jupiter supercomputer in Germany.
Financial Position and Outlook
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Backlog and Pipeline
Atos had a backlog of 10.7 billion euros at the end of December, representing 1.3 years of revenue, signalling a solid pipeline of contracted work that underpins its confidence in the recovery path.
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Stabilization and Growth Targets
2026 Stabilization
Atos expects 2026 to be a "year of stabilization" with a target of positive organic revenue growth, and potential downside limited to a 5% decline in a challenging market.
2027-2028 Growth Acceleration
It expects to accelerate growth in 2027-2028, aiming for 5-7% annual revenue growth and a 10% operating margin by 2028.
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Leverage and Credit Rating Goals
Atos also aims to reduce its leverage ratio to net debt less than 1.5 times its operating income by 2028, as it pursues an investment-grade credit rating.
Additional Information
Exchange Rate
($1 = 0.8610 euros)
Reporting Credits
(Reporting by Leo Marchandon in Gdansk, editing by Milla Nissi-Prussak)
