Atos announces the revenue of its first quarter of 2017.
Q1 2017 revenue (including Unify S&P as of January 1st, 2017) was € 3,111 million, up +2.0% organically and +12% at constant exchange rates. Order entry was € 3,035 million leading to a book to bill ratio of 98%.
Thierry Breton, Chairman and CEO said: “During the first quarter, the Group experienced the best commercial performance since I began leading the company. This materializes the full alignment of our Digital Transformation Factory offerings with the demand of our clients for transformational and automated digital services.
While discussions were still going on, the Board of Directors decided today that, timewise, the integration of Unify Software & Platforms will create more value for our shareholders. The integration will also further reinforce our Digital Workplace offering with unified collaboration and communication solutions.
Taking into account the integration of Unify S&P, Atos raised its operating margin objective for 2017, driving profitable growth through high value technologies and innovative solutions.”
Integration of Unify Software & Platforms
The decision was made to integrate Unify Software & Platforms into Atos (Infrastructure & Data Management division). This entity generated revenue of € 677 million in 2016, while services revenue delivered by Atos to Unify Software & Platforms represented € 231 million in 2016 (neutralized in the Atos consolidation perimeter as of January 1st, 2017). For 2017, further to the restructuring completed in 2016 and cross-selling on Atos customer base supporting a revenue positive organic growth by year-end, the integration of Unify Software & Platforms is expected to contribute for circa € 100 million additional OMDA.
As such, figures presented in this document include Unify Software & Platforms operations.
2017 objectives
Taking into account the integration of Unify Software & Platforms from January 1st, Atos updated its 2017 objectives:
Revenue growth: Circa +9.5% at constant exchange rates (vs. circa +6% previously), above +2% organically (unchanged).
Operating margin: Raised to circa 10.0% of revenue (vs. between 9.5% and 10.0% previously).
Free cash flow: Operating margin conversion rate to free cash flow between 55% and 58% (unchanged).
As a consequence, 2019 Ambition operating margin target is also raised to circa 11.0% of revenue (vs. between 10.5% and 11.0% previously).
Q1 2017 revenue performance by Business Unit
At constant scope and exchange rates
During the first quarter of 2017, revenue grew in all Business Units: