| | Atos Origin has
announced a decline in
third quarter revenues
in the UK, with figures
falling below previous
estimates.
Revenues for the
first nine months ended
30 September were
€3,972m, compared with
€4,019m for the
equivalent period last
year. After adjusting
for disposals, mainly
Nordic and Middle East
activities, for €132m,
and at constant exchange
rates, the group
generated organic growth
of +1.9%, + 5.7%
excluding the UK.
Revenues for the
third quarter ended 30
September amounted to
€1,276m, down 1.3 %.
After adjusting for
disposals and exchange
rate fluctuations, Q3
organic growth was
-0.2%, of which -18% was
in the UK and +5.1% in
the rest of the world.
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| | Euronext.Liffe contract
(booked in France) is
now in the comparable
figure for 2005
(starting in Q3 2005) as
a result of a good level
of fertilization on
existing clients. In the
Netherlands revenues
were up +7%, thanks to
both strong business
fertilization and new
signatures coming into
revenues. In Germany and
Central Europe, activity
remained good but with
slower growth than
previous quarters, while
the pipeline holds
several large
opportunities.
In Q3 2006, the UK
activities were down
18.1%. Half of the
decline was due to the
loss of the Metropolitan
Police contract and the
expected ramp down of
the major MOD contract,
as disclosed since the
beginning of the year.
The other half of the | |
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| | decline was generalized
across all three service
lines, with each one
being down about 10%.
This is due to the less
favourable Euronext
comparison, as expected,
and weak short-term
order entry in
consulting and systems
integration, delays in
final negotiations on
the key Systems
Integration difficult
contracts and
postponement of a few
projects into Q4.
Nevertheless, since
September, contractual
progress on new
signatures in the UK has
been good with final
signatures amounting to
€1bn from Government
Gateway, Rail Settlement
Plan, NHS Scotland,
NFUM, and DCA
infrastructure. The two
regional NHS Diagnostics
Centres are still in
preferred bidder status
but should be signed in | |
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| | the coming weeks.
As a consequence,
2006 organic revenue
growth will be around
+1.5%, or +4.5%
excluding the UK.
Atos said that in
light of the current
situation, the decision
has been taken to
tighten the top
management team and
increase the areas of
responsibility of
Dominique Illien and
Wilbert Kieboom.
Beyond management
board level changes,
Atos Origin said its top
management is currently
leading a review of the
group’s structure and
organization, in order
to further improve its
organic growth
capabilities and
operational efficiency.
The resulting
transformation plan will
be announced in January
2007, together with the
outlook for 2007.
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For the quarter,
excluding the UK,
Consulting was up 13.3%
organically, Systems
Integration recorded
organic growth of 4.1%,
and Managed Operations’
organic growth was 4.9%.
In France, Germany
and EMEA, generally,
there was strong growth
while the Netherlands
declined by 2%, the
company said. In Italy
there was a slight
decline due to the focus
on executing the
restructuring and
reorganisation plan.
Growth in the period was
due to better volumes,
with prices remaining
broadly stable.
In France growth
declined to +2%, as the | |
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