Information Technology
ATOS :Strong first half 2016 results
- Atos, a global leader in digital services, today announces its financial results for the first half of 2016.
was , up +17.9% at constant exchange rates and . Organic growth at +1.8% during the second quarter of 2016 reflected the sustainability of the revenue momentum.
totaled during the first half of 2016, up +24.0% year-on-year and representing a of . Commercial activity remained strong in Q2 with a book to bill ratio of 120%.
was , up +23.1% compared to H1 2015 operating margin and representing , an improvement by at constant scope and exchange rates. was including EUR 51 million for Worldline share in Visa Europe sold to Visa Inc.. reached (including EUR 36 million Group share for Visa), up compared to H1 2015.
totaled during the first half of 2016, +74.2% compared to H1 2015 free cash flow. Further to free cash flow generation, payment of Unify acquisition, dividend paid on 2015 results, and proceeds received from Visa Inc., Group was at the end of June 2016.
, Chairman and CEO said: "
The Group raised all its objectives for 2016:
Organic growth of +1.5% to +2.0% (vs. above +0.4% initially). Growth at constant exchange rates above +11% (vs. above +8% initially).
Between 9.2% and 9.5% of revenue (vs. 9.0% to 9.5% initially).
Above EUR 550 million (vs. circa EUR 550 million initially).
Managed Services was , at constant scope and exchange rates. The Service Line continued to successfully drive the transition of its customers to hybrid cloud infrastructures resulting in positive organic growth, thanks to growing volumes and new contracts globally compensating for the decrease in the unit price, while increasing margin. This trend materialized particularly in North America with a strong commercial dynamism further to the integration of Xerox ITO, and in Germany with existing large customers including Siemens. Asia Pacific also contributed to growth mostly thanks to higher volumes in Financial Services.
was , representing compared to 7.2% during the first half of 2015 at constant scope and exchange rates. This strong improvement came from the continued actions to decrease the cost base thanks to higher industrialization as well as more cloud based businesses and automation. The increased profitability was also generated by the successful integration of Xerox ITO and by the first effects of the cost saving plan on Unify from restructuring, rationalization, and procurement.
in Consulting & Systems Integration was , up at constant scope and exchange rates materializing a steady top line improvement. A stronger activity with several large banks in France and Germany, compensated for the Ashgabat project delivered last year in Central & Eastern Europe. The business was also fueled by new contracts with central and local administrations in France and Germany and with a large media company in the UK, offsetting contracts delivered last year in Manufacturing and Retail in the US and in the UK.
was , representing , +20 basis points compared to the first half of 2015 at constant scope and exchange rates. Excluding pension one-offs recorded in H1 2015, the margin improvement represented +70 basis points thanks to a strong revenue growth in Germany and in France, and a better project and workforce management in all geographies.
in Big Data & Cybersecurity accelerated at at constant scope and exchange rates, leading to revenue in H1 2016. Revenue growth was generated in all geographies and mostly in the public sector. Demand for High Performance Computing remained very strong in order to support the growing Big Data processing needs of our clients, as well as for encryption, access management solutions, and Intrusion testing solutions.
was , up by +14.1% compared to H1 2015 at constant scope and exchange rates and representing , thanks to revenue growth and the remaining synergies resulting from the Bull integration.
From a contributive perspective to Atos, Worldline was , improving by organically. On a standalone basis, revenue reached EUR 615 million, up +6.0% at constant scope and exchange rates. Merchant Services & Terminals was up +10.0% mainly thanks to higher volumes and positive price mix in Commercial Acquiring. Financial Processing & Software Licensing was up +4.1%, mainly driven by Acquiring processing volume growth in France and India and a strong level of license sales in Payment Software & Licensing. Mobility & e-Transactional Services grew by +3.5% thanks to a strong activity in e-Government Collection and in e-Consumer & Mobility compensating for the UK VOSA contract ended in Q3 2015. Except the UK, all the geographies strongly grew.
Standalone OMDA increased by +80 basis points, reaching EUR 117.2 million and representing 19.1% of revenue. Contributive was , or , +180 basis points at constant scope and exchange rates compared to H1 2015. This strong improvement was led by Merchant Services & Terminals, thanks to both volume transaction growth and a tight cost control.
A detailed presentation of Worldline H1 2016 performance is available at worldline.com , in the investors section.
Several large geographies significantly improved their revenue performance during the first semester:
Worldline continued to contribute to the Group organic growth with a strong +5.9% over the period and "Other Business Units" also contributed to Group revenue increase, thanks to a double digit growth in Asia Pacific, South America and IMEA.
Conversely:
During the first half of 2016, the Group continued to execute the Tier One program through industrialization, global delivery from offshore locations, and continuous optimization of SG&A. In addition, operating margin benefitted from ongoing cost synergies including the integration of Unify. This resulted in a strong margin improvement in several large geographies such as Germany, North America, and France. Finally, in the first half of 2016, the Group did not benefit from any positive one-off impact of pension schemes optimization.
Global structures costs for IT Services increased by +60 basis points compared to the first semester of 2015 at constant scope and exchange rates, mainly due the positive effect recorded in H1 2015 for pension plan optimization.
Globally, the Group improved its operating margin rate by +60 basis points. The improvement was +130 basis points excluding pension schemes optimization one-offs recorded in H1 2015.
During the first half of 2016, the Group recorded , and representing a of .
Commercial activity was particularly strong in Q2 with a book to bill ratio of 120%, driven by Cloud migration projects such as in the contract signed with the Texas Department of Information Resources for Hybrid Cloud Services and by digital transformation projects as for example the signature with a new logo, an American large quick serve restaurant provider, to deliver digital retail solution and an improved customer experience with the development of a mobile app. The Group also renewed large contracts such as the PIP contract with the UK Department for Work & Pensions. Commercial dynamism also came from the cross-selling strategy of the Group. As such, the Group signed a significant contract in Big Data with a French car manufacturer including the sale of a HPC, showing the promising perspectives of Big Data opportunities in the private sector, and had one of its first significant wins with Unify for the outsourcing of the communication network's management and services of Solvay.
Commercial dynamism translated into healthy book to bill ratios in all Service Lines. book to bill ratio reached thanks to large signatures in Benelux & The Nordics as well as in North America and Germany. order entry represented of revenue thanks to several contract wins in UK & Ireland in particular as well as in Benelux & The Nordics and in France. The level of booking was also high in and at and respectively.
In line with the dynamic commercial activity, the at the end of June 2016 amounted to , representing 1.7 year of revenue, compared to EUR 19.1 billion published at the end of 2015. The was representing 6.7 months of revenue at , compared to EUR 6.2 billion published at the end of 2015.
for the first half of 2016 year was , +64.2% year-on-year, resulting from the following items:
Costs for staff amounted to compared to EUR 116 million in H1 2015, as a consequence of the adaptation of the Group workforce in continental Europe. These actions were initiated as early as possible in order to maximize cost savings effect in FY 2016.
were recorded as of Purchase Price Allocation for SIS, Bull, Xerox ITO, and Unify. The amounted to , compared to EUR-16 million in H1 2015.
amounted to compared to a charge of EUR-1 million in H1 2015. They included the gain on the sale of the share in Visa Europe to Visa Inc. for EUR 51 million, partially offset by a settlement of an old litigation in Germany.
was a charge of , including the cost of the straight bond issued in mid-2015. Total was , representing an of , significantly down compared to 25.2% in H1 2015.
As a result, was , +69.8% compared to EUR 138 million in H1 2015. amounted to and were related to the minority shareholders in Worldline. Therefore, the reached , +66.9% compared to EUR 123 million in H1 2015.
Net income of Unify Software & Platforms discontinued operations was a loss of EUR-31 million. The annual objective to reach EUR+10 million net income is confirmed.
was , +62.3% compared to EUR 1.23 in H1 2015 and was , +62.9% compared to EUR 1.22 during the first half of 2015.
(OMDA) was representing 10.3% of revenue, compared to EUR 459 million in H1 2015 (9.3% of revenue).
As planned, total cash-out for was compared to EUR-142 million in H1 2015, fully in line with the EUR 150 million 2016 target.
During the first half of 2016, totaled , representing , compared to EUR 215 million in H1 2015 (4.3% of revenue). negatively contributed by , due to a growing activity in the public sector. It represented EUR+49 million in H1 2015 mainly thanks to the optimization of Bull's working capital.
Cash-out for was (EUR-3 million in H1 2015) and was compared to EUR-58 million in H1 2015. Finally, totaled , compared to EUR+14 million in H1 2015.
As a result, the Group generated during the first half of 2016 totaled , strongly up compared to EUR 104 million in H1 2015.
in H1 2016 amounted to , mainly related to the acquisition of Unify.
As part of the , the Group received from Visa Inc.
, mostly related to proceeds from stock-options totaled in H1 2016 compared to EUR 38 million in H1 2015.
The cash-out resulting from the option for the payment in cash of on 2015 results was compared to EUR-31 million last year, roughly in line with the increase of dividend per share from EUR0.80 to EUR1.10.
Finally, mainly due to the British pound decreased versus the euro, foreign on debt or cash in foreign currencies totaled compared to EUR+67 million in H1 2015.
As a result, Group as of June 30, 2016 was , compared to EUR 593 million on December 31, 2015.
The was at the end of June 2016. The increase of +5.5% of the Group workforce compared to 91,322 at the end of December 2015 was mainly due to the circa 5,200 staff who joined the Group from Unify on February 1 , 2016.
was 12.2% at Group level of which 18.4% in offshore countries, excluding the discontinued Unify Software & Platforms operations.
The number of at the end of June 2016 was , representing 92.3% of the total Group headcount, compared to 93.7% at the end of 2015. Adjusted from the scope effect from Unify, decreased by -5.1% in line with the continuous optimization of the indirect workforce.
Number of reached people by the end of June 2016. The majority of the offshore workforce is located in India, the rest being mainly in Eastern Europe. Offshore for Systems Integration represented 44% of direct staff.
The review procedures on the interim financial information have been performed by the statutory auditors. Their review report is currently being issued.
Exchange rates effect mainly came from the British pound (-6% year-on-year versus euro), the Argentine peso (-39%), the Brazilian real (-20%), the Turkish lira (-13%) and the Swiss franc (-4%).
Scope effects were mainly related to the positive contribution of Xerox ITO (6 months for EUR+596 million) and Unify (5 months for EUR+244 million, including EUR+89 million of revenue made with Unify Software & Platforms discontinued operations). Other effects were related to (i) the early termination of the DWP WCA contract (2 months), (ii) the disposal of on-sites services in France (2 months), (iii) the sale of the Occupational Health business in January 2016 (6 months), and (iv) the external revenue made with Unify and accounted as internal revenue further to the acquisition (5 months).
Same effects as well as the reclassification of the cost of equity based compensation are reflected in the operating margin at constant scope and exchange rates.
Today, Tuesday, July 26, 2016, Thierry Breton; Chairman and CEO, Elie Girard, Chief Financial Officer, and Patrick Adiba, Chief Commercial Officer, will comment on Atos' first half 2016 results and answer questions from the financial community during a in English starting at 6:00 pm (CET - Paris).
You can join the of the conference:
October 20, 2016 Third quarter 2016 revenue
: Terence Zakka +33 1 73 26 40 76
terence.zakka@atos.net
: Gilles Arditti +33 1 73 26 00 66
gilles.arditti@atos.net
Benoit d'Amécourt +33 1 73 26 02 27
benoit.damecourt@atos.net
Atos SE (Societas Europaea) is a leader in digital services with pro forma annual revenue of circa EUR 12 billion and circa 100,000 employees in 72 countries. Serving a global client base, the Group provides Consulting & Systems Integration services, Managed Services & BPO, Cloud operations, Big Data & Cybersecurity solutions, as well as transactional services through Worldline, the European leader in the payments and transactional services industry. With its deep technology expertise and industry knowledge, the Group works with clients across different business sectors: Defense, Financial Services, Health, Manufacturing, Media, Utilities, Public sector, Retail, Telecommunications, and Transportation.
Atos is focused on business technology that powers progress and helps organizations to create their firm of the future. The Group is the Worldwide Information Technology Partner for the Olympic & Paralympic Games and is listed on the Euronext Paris market. Atos operates under the brands Atos, Atos Consulting, Atos Worldgrid, Bull, Canopy, Unify and Worldline.
For more information, visit: atos.net .
This document contains forward-looking statements that involve risks and uncertainties, including references, concerning the Group's expected growth and profitability in the future which may significantly impact the expected performance indicated in the forward-looking statements. These risks and uncertainties are linked to factors out of the control of the Company and not precisely estimated, such as market conditions or competitors behaviors. Any forward-looking statements made in this document are statements about Atos' beliefs and expectations and should be evaluated as such. Forward-looking statements include statements that may relate to Atos' plans, objectives, strategies, goals, future events, future revenues or synergies, or performance, and other information that is not historical information. 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 2015 Registration Document filed with the Autorité des Marchés Financiers (AMF) on April 7, 2016 under the registration number: D.16-0300. Atos does not undertake, and specifically disclaims, any obligation or responsibility to update or amend any of the information above except as otherwise required by law. This document does not contain or constitute an offer of Atos' shares for sale or an invitation or inducement to invest in Atos' shares in France, the United States of America or any other jurisdiction.
Revenue organic growth is presented at constant scope and exchange rates. Operating margin is presented as defined in the 2015 Registration Document.
Business Units include , , , (BTN: The Netherlands, Belgium, Luxembourg, Denmark, Finland, Sweden, and Estonia), , (NAM: USA, Canada, and Mexico), and including Central & Eastern Europe (CEE: Austria, Bulgaria, Croatia, Czech Republic, Greece, Hungary, Italy, Lithuania, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Switzerland and Turkey), Iberia (Spain, Portugal, and Andorra), Asia-Pacific (APAC: Australia, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand), South America (SAM: Brazil, Argentina, Colombia, Chile, Guatemala, Jamaica, Peru, and Uruguay), India, Middle East & Africa (IMEA: Algeria, Benin, Burkina Faso, Egypt, Gabon, Israel, India, Ivory Coast, Lebanon, Madagascar, Mali, Mauritius, Morocco, Qatar, Saudi Arabia, Senegal, South Africa and UAE), Major Events, and Cloud & Enterprise Software.
Atos decided, as early as the acquisition date, to retain only part of the activity of Unify. As a result, the Software & Platforms business, along with the customers and the countries that were planned to be managed through indirect channels, have been accounted for as discontinued operations and are in the process of being physically carved-out to facilitate the disposal of this activity. Therefore, the 2016 and 2015 pro forma consolidated external revenue and operating margin reflect the retained scope of Unify only
Copyright GlobeNewswire
Attachment(s)
http://hugin.info/143359/R/2030822/755468.pdf
Regulatory News
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: %s via Globenewswire