“Atos Origin – 1st Quarter 2003 Revenues: Revenue in line with expectations”
PARIS/AMSTERDAM - May 16th 2003
Atos Origin, a leading international information technology services provider, today announced that revenues for the first three months of 2003 amounted to EUR 781 million, an increase of 4.2% compared with the first quarter of 2002. Currency movements adversely impacted trading in the first three months of this year and revenues were nearly 7% higher on a constant exchange rate basis.
Compared with the first quarter of 2002, the group benefited from a first time revenue contribution of EUR 97 million from Atos KPMG Consulting (AKC). Excluding AKC, group revenues fell by 6.5% on a constant scope and exchange rate basis, reflecting declines of 10% and 4% in Systems Integration and Managed Operations respectively.
The systems integration market continued to show some volume and pricing weakness in the first quarter, but revenue was in line with our expectations. Compared with the end of last year, we have stabilized revenue performance in Managed Operations and there has been a steady and encouraging inflow of medium-sized orders during the early months of 2003.
The Group is continuing to reduce its cost base across the board, in line with plans set out at the time of announcing full year results for 2002. Staff reduction is in line with those plans and with the revenue run rate of the past quarter.
In addition, there was a further reduction in net debt to EUR 425 million at March 31st, 2003.
The Group does not expect any broad-based recovery in the IT services market during 2003. Consequently, we are still projecting modest reported revenue growth this year, which will be generated primarily by the consolidation of Atos KPMG Consulting for a full 12 month period, offset by some revenue erosion in Systems Integration and the adverse impact of exchange rate movements.
About Atos Origin
Atos Origin is an international information technology services provider. Its business is turning client vision into results through the application of consulting, systems integration and managed operations, including outsourcing and on-line services. In August 2002, Atos Origin acquired KPMG Consulting in the UK and The Netherlands, trading as Atos KPMG Consulting. The company generates annual revenues of EUR 3 billion and employs 28,000 staff in 30 countries. The Group's client list includes major companies such as ABN AMRO, Akzo-Nobel, Alstom, BNP Paribas, BP, Euronext, Fiat, ICI, ING, KPN, Lucent, Philips, Renault,
Royal Bank of Scotland, Saudi Aramco, Shell, UBS Warburg, Unilever, Vivendi Universal, Vodafone and Wolters Kluwer.
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ANALYSIS OF REPORTED REVENUE
Revenue by Service Line
3 Months ended 31st March
|Less: Businesses sold|
|At Constant Scope and Exchange Rates|
Revenue by Geographic Region
3 Months ended 31st March
Note: Revenues in 2002 have been adjusted to report Euronext contracts in Benelux under France.