“Atos Origin fourth quarter 2008 revenue”
Paris, 5 February 2009
Fourth quarter organic growth at +3.6 per cent
Full year 2008 organic growth at +5.6 per cent
Fourth quarter 2008
- Revenue at EUR 1,407 million with a +3.6 per cent organic growth
- Book to bill ratio at 110 per cent
- Revenue reached EUR 5,479 million; all service lines contributing to total organic growth of +5.6 per cent
- Total order entries at EUR 5.4 billion; book to bill ratio at 98 per cent
- Full backlog at EUR 7.4 billion representing 1.4 year of revenue
Atos Origin, a leading European IT services company, today announces 2008 fourth quarter revenue at EUR 1 407 million representing an organic growth of +3.6 per cent. For the total year 2008, revenue was EUR 5 479 million representing a +5.6 per cent organic growth.
Fourth quarter 2008 revenue:
Fourth quarter 2008 revenue reached a +3.6 per cent organic growth compared to +5.3 per cent for the third quarter and +6.8 per cent for the first half of the year. Recurring activities in Managed Services and Atos Worldline still demonstrated a solid growth. Cyclical activities in Consulting and Systems Integration witnessed a slowdown.
Revenue from recurring activities (Managed Operations and Application Management) generated 69% of total revenue. With an organic growth of +7.4 per cent during the last quarter, these activities showed a solid performance.
During the last quarter of 2008, Consulting revenue achieved EUR 87 million representing an organic decrease of -2.4 per cent compared to +2.1 per cent for the first nine months of 2008. While the United Kingdom and Asia Pacific reported positive organic growth, France was affected by tougher market conditions in Consulting practices. The Netherlands and Spain were able to maintain the same level of revenue than in the fourth quarter 2007.
Systems Integration reached EUR 565 million in the last quarter of 2008, with an organic growth of +1.6 per cent after +6.8 per cent for the first nine months of 2008. Group performance was mainly impacted by a decrease of the activity in The Netherlands. The United Kingdom and Germany Central Europe performed well with +5 per cent growth thanks to a good level of business made with clients such as Dresdner Bank, E-Plus, Highways Agency or NHS. Growth in France remained positive and Asia Pacific remained at the same level of revenue compared to the last quarter of 2007.
In Managed Operations, revenue in the last quarter of 2008 was EUR 755 million up with a +6 per cent organic growth after +6.5 per cent for the first nine months of the year. This performance was led by all geographies except Germany Central Europe which decreased in Managed Services business. Atos Worldline performed well with a +9.1 per cent organic growth of which a double digits growth in France.
Full-year 2008 revenue:
Based on the new scope which excludes Italy and AEMS Exchange disposed during the year, total revenue reached EUR 5,479 million which represents an organic growth of +5.6 per cent achieving the guidance of a revenue organic growth above +5 per cent.
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In Consulting, revenue organic growth was positive with +1 per cent and EUR 349 million. Despite tougher market conditions in all countries, the Group was able to generate more revenue than last year as a result of the strategy to develop IT Consulting in synergy with Systems Integration and Managed Operations. Decrease of revenue recorded in the United Kingdom was offset by a good performance in Asia Pacific mainly in China and in Spain in the Financial and Telecom sectors. France remained on a positive trend with a slight increase compared to last year while The Netherlands improved its trend with a +3.3 per cent growth in the second part of 2008, but recorded a -2.1 per cent decrease for the full year.
In Systems Integration, full-year 2008 revenue amounted to EUR 2,202 million increasing by +5.4 per cent organically. The utilization rate was 79 per cent. Germany Central Europe, Asia Pacific and Other EMEA recorded a double digits growth. The United Kingdom performed a +9.4 per cent organic growth over last year with EUR 292 million revenue. France ended the year at EUR 680 million with +4.1 per cent growth, above last year performance which was +2 per cent. The Netherlands affected by the KPN effect decreased by -2.7 per cent at EUR 413 million. Americas impacted by the end of the Panamerican Games in Brazil had a negative organic growth of -7.3 per cent.
In Managed Operations, full-year 2008 revenue reached EUR 2,928 million representing an organic growth of +6.4 per cent. The United Kingdom, Spain and Asia Pacific significantly contributed to this performance with double digits growth; France achieved an organic growth close to these geographic areas. The Netherlands and Germany Central Europe almost maintained the same level of revenue compared to last year. Atos Worldline confirmed the strong growth recorded this year ending at double digits end of 2008 in total and in its main geographic areas.
During the fourth quarter of 2008, the Group maintained a good level of signatures with an excellent win rate in the renewals of major contracts demonstrating the customers’ confidence in Atos Origin. In addition, the Group was able to perform a good level of fertilization by deploying key offerings with major clients such as Gaz de France, EDF, Total in France and Ministry of Justice in the United Kingdom.
In the last quarter of 2008, the order entries reached EUR 1.5 billion representing a book to bill ratio at 110 per cent. The Group won several contracts such as Redcats, La Poste and Ministry of Finance in France, signed a series of contracts in the United Kingdom such as Department of Health and City & Guilds, in The Netherlands with Sanoma, Rabo Group and Océ Technologies, and in Germany with E-Plus, ING and Alstom.
Total order entry for the year 2008 reached EUR 5.4 billion representing a book to bill ratio of 98 per cent. Book to bill ratio by service line was 98 per cent for Consulting, 96 per cent for Systems Integration and 100 per cent in Managed Operations.
At the end of 2008, the full backlog was EUR 7.4 billion representing 1.4 time 2008 revenue.
Full qualified pipeline at the end of 2008 reached EUR 2.7 billion which is an increase of EUR 800 million compared to the level reached at the end of 2007.
Further details and guidance will be provided on 18 February 2009 with the publication of the 2008 annual results.
|10 February 2009||Ordinary and Extraordinary Shareholders’ Meeting|
|18 February 2009||Announcement of 2008 results|
|29 April 2009||First quarter 2009 revenue|
Revenue organic growth is presented at constant scope and exchange rates
This document contains unaudited 2008 figures.
The document contains further forward-looking statements that involve risks and uncertainties concerning the Group’s expected growth and profitability in the future. Actual events or results may differ from those described in this document due to a number of risks and uncertainties that are described within the 2007 annual report filed with the Autorités des Marchés Financiers (AMF) on 9 April 2008 as a Document de Référence under the registration number: D08-218.
About Atos Origin
Atos Origin is an international information technology services company. Its business is turning client vision into results through the application of Consulting, Systems Integration and Managed Operations. The Company’s annual revenue is EUR 5.5 billion and it employs 50,000 professionals in 40 countries. Atos Origin is the Worldwide Information Technology Partner for the Olympic Games and has a client base of international blue-chip companies across all sectors.
Atos Origin is quoted on the Paris Eurolist Market and trades as Atos Origin, Atos Worldline and Atos Consulting.
Tel. : +33 (0) 1 55 91 26 33,
Tel. : +33 (0) 1 55 91 28 83,
ANALYSIS FOURTH QUARTER 2008 REVENUE
|By Service Line||3 months ended 31 December 2008|
|By Geography||3 months ended 31 December 2008|
ANALYSIS 2008 REVENUE
|By Service Line||12 months ended 31 December 2008|
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|By Geography||12 months ended 31 December 2008|
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