Atos: H1 results down
(CercleFinance.com) - Atos shares were down on the Paris Bourse on Thursday morning, following the publication of first-half results that analysts deemed "very poor".
The technology consulting group, which is in the midst of a financial restructuring, reported sales down 2.7% organically to E4,964m for H1.
Its operating margin came to E115m, or 2.3% of sales, corresponding to an organic decline of 100bp.
Operating profitability was penalised by a violent deterioration in Eviden's Ebita margin (-2.3 points to 2.4%), while Tech Foundations' margin was surprisingly resilient (+0.3 points to 2.2%), Invest Securities argues.
For the record, the Eviden branch specialies in advanced computing, security, AI and cloud, while the Tech Foundations division covers outsourcing services.
In its press release, Atos states that its free cash flow in H1 was negative at -E1,914m, and that its net loss widened to E1,941m, compared with -E600m a year earlier.
Invest's teams point out that the group has not renewed the outlook for fiscal 2024 presented as part of the financial restructuring.
Jean Pierre Mustier, its CEO, nevertheless reiterated that the opening of an accelerated safeguard procedure was a 'very important' step towards the company's turnaround.
We now have an agreement with our financial creditors, providing us with sufficient liquidity to operate the Group and giving us a solid foundation for the future, he said.
This is the start of a new period of recovery and development for the group, he assured.
On the Paris Bourse, Atos shares were down by more than 5% on Thursday morning in early trading.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The technology consulting group, which is in the midst of a financial restructuring, reported sales down 2.7% organically to E4,964m for H1.
Its operating margin came to E115m, or 2.3% of sales, corresponding to an organic decline of 100bp.
Operating profitability was penalised by a violent deterioration in Eviden's Ebita margin (-2.3 points to 2.4%), while Tech Foundations' margin was surprisingly resilient (+0.3 points to 2.2%), Invest Securities argues.
For the record, the Eviden branch specialies in advanced computing, security, AI and cloud, while the Tech Foundations division covers outsourcing services.
In its press release, Atos states that its free cash flow in H1 was negative at -E1,914m, and that its net loss widened to E1,941m, compared with -E600m a year earlier.
Invest's teams point out that the group has not renewed the outlook for fiscal 2024 presented as part of the financial restructuring.
Jean Pierre Mustier, its CEO, nevertheless reiterated that the opening of an accelerated safeguard procedure was a 'very important' step towards the company's turnaround.
We now have an agreement with our financial creditors, providing us with sufficient liquidity to operate the Group and giving us a solid foundation for the future, he said.
This is the start of a new period of recovery and development for the group, he assured.
On the Paris Bourse, Atos shares were down by more than 5% on Thursday morning in early trading.
Copyright (c) 2024 CercleFinance.com. All rights reserved.