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France's Atos posts higher-than-expected Q1 sales

France's Atos posts higher-than-expected Q1 sales

FILE PHOTO: People walk in front of Atos company's logo during a presentation of the new Bull sequana supercomputer in Paris, France, April 12, 2016. REUTERS/Philippe Wojazer/File Photo

27 Apr 2023 01:05PM (Updated: 27 Apr 2023 01:44PM)

PARIS :Struggling French IT consulting firm Atos posted higher-than-expected quarterly sales on Thursday, driven by its cybersecurity and digital transformation unit Eviden, as the groups works on a costly split-up plan.

First-quarter revenue was up 2.8 per cent from a year earlier to 2.81 billion euros ($3.11 billion). This beat the 2.75 billion-euro consensus compiled by the company, based on 11 analyst estimates.

Eviden, which the group plans to spin-off by the end of the year, posted a 9.5 per cent growth in sales on an organic basis to 1.33 billion euros, offsetting a 2.6 per cent drop in sales at Atos' loss-making Tech Foundations IT consulting legacy activities.

The quarter was notably marked by a withdrawal by Airbus, the world's largest planemaker, from a plan to buy a minority stake in Eviden.

The group confirmed its full-year targets, including a group revenue organic growth in the range of -1 per cent to 1 per cent in 2023 and an operating margin between 4 per cent to 5 per cent.

Atos said its much-expected shareholders meeting will take place on June 28, following strong criticisms from some investors against the company's board.

($1 = 0.9047 euros)

Source: Reuters

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