Atos’ revenue decline moderates, but order intake remains weak

Atos ($ATO-EURONEXT) reported quarterly revenue of €1.642 billion, with combined Atos and Eviden organic revenue down 2.4%. The rate of decline improved, but the business has not returned to organic growth. Order intake was €1.024 billion and the book-to-bill ratio was 62%, seven percentage points lower, indicating that new bookings remained below the revenue recognized during the period.

The group reported a €44 million positive net cash movement despite €50 million of restructuring cash outflows, with liquidity of €966 million. It retained full-year targets of approximately 5% organic revenue decline, an operating margin of around 7% and positive net cash movement. Better cash performance and a moderating sales decline support the recovery effort, while weak bookings remain an important qualification. Liquidity should not be confused with quarterly free cash flow or a guarantee of future profitability.

Sources:

• Atos — GlobeNewswire trading update