Atos reported a revenue decline for the first quarter. This is due to a lower order intake in 2024 caused by a sharp decline in business process outsourcing activities in the United Kingdom. The company emphasizes that customer orders are picking up again.
The IT group’s revenue amounted to €2.07 billion, a decrease of 15.9% compared to a year earlier. The cloud and cyber security divisions experienced a decline in volume in the UK and contract expiry, resulting in revenue falls of 14% and 17.5%, respectively.
Nevertheless, the group’s order intake rose to €1.7 billion on March 31, compared with €1.6 billion a year earlier. The book-to-bill ratio, which compares the number of orders received with the number of orders executed, was 81%, compared with 64% last year. A higher ratio indicates a greater chance of new orders being secured.
CEO Philippe Salle stated that, although revenue remained under pressure, commercial activity continued to recover during the quarter. According to him, this demonstrates customer confidence.
Failed split-up project
Atos accumulated a debt of €4.8 billion after a series of expensive acquisitions and a failed split-up project. However, the company managed to stay afloat financially in 2024 thanks to a restructuring plan agreed with its creditors.
This year, Atos has already signed contracts worth hundreds of millions of euros with the British and Serbian governments. This has enabled the company to recover from previous contract terminations that significantly impacted its results. In March, the company also launched a reverse stock split to increase its share price. This came after a recent capital increase had led to significant dilution of the shareholdings of existing shareholders.
Salle will present a new strategy for the company at an investor meeting in Paris on May 14. He is now the sixth CEO of Atos in two years.