Atos Origin Preliminary Revenues For 2005
2 February 2006
Organic revenue growth at +8.0% in 2005.
PARIS – 31 January 2006 - Atos Origin, a leading international information technology services provider, today announced that unaudited revenues for the twelve months ended 31 December 2005 amounted to EUR 5,459 million, compared with EUR 5,249 million for the same period in 2004 (+4.0%). Adjusting for the recent disposal of several business units, the group generated strong organic revenue growth of 8.0% on a constant scope and exchange rate basis.
The appendix to this statement provides analysis of full year and fourth quarter 2005 revenues by service line.
The Group recorded strong revenues in the final quarter of 2005, in spite of concerns expressed in November 2005 about slightly weaker revenue performances in several business units. Consequently organic growth reached 8% for the year as a whole, slightly better than the Group s most recent objective.
Total Group revenues for 2005 amounted to EUR 5,459 million. In 2004, Atos Origin reported revenues of EUR 5,302 million under French GAAP. The Group has reported under IFRS for the first time in 2005 and has therefore restated the 2004 comparative by eliminating nil margin pass-through revenue, which amounted to EUR 53 million in 2004. This relates mainly to the provision of media content by Atos Worldline in France. Reported Group revenues in 2005 were therefore 4.0% higher than the comparative pro forma revenues of the Group in 2004 under IFRS.
n the past 24 months, the Group has disposed of a number of businesses, which removed exactly EUR 200 million from the comparative revenue base – mainly the Nordic business in June 2005 and the Cellnet business in the United States in July 2004. Exchange rate movements resulted in a positive adjustment of EUR 4 million on a comparable year-on-year basis. The constant scope revenue figure for 2004 under IFRS was therefore EUR 5,053 million and reported revenues of EUR 5,459 million in 2005 represent organic growth of 8.0%.
Revenue by Service Line
An analysis of revenue by service line is shown in the attached appendix.
Consulting produced a strong organic revenue increase of 12.8% in 2005. This performance resulted from the positive effects of volume, pricing and bonus awards on projects, and is an example of how the Group is now benefiting from the acquisition of KPMG Consulting. The increased demand in Consulting is a good indicator of the market recovery.
Revenues in Systems Integration were 8.7% higher organically in 2005, which extends the upward trend seen in 2004 and throughout 2005 and demonstrates clearly that this service line has returned to a growth path. Growth in the period was mainly due to better volumes, with prices remaining broadly stable. The Group has increased the amount of recurring revenues in this segment from application life cycle management, which now represents 14% of total Group revenue.
After adjusting for disposals - mainly the US Cellnet business sold in July 2004 and the Nordic business sold in June 2005 - organic revenue growth in Managed Operations was 6.8%, reflecting the steady inflow of orders that has accumulated during the past year. After strong organic revenue growth of 9.0% in Q1 2005, the more modest increase in the following quarters was due to the conclusion of a one-year, non-recurring and fully subcontracted call centre contract in the United Kingdom, representing a revenue loss of EUR 90 million from April 2005 onwards on a full-year basis, and the fact that the KarstadtQuelle contract came on stream in Q4 2004 and therefore had no impact on percentage growth in Q4 2005.
Quarterly Revenue Performance
Revenue in the fourth quarter represented a strong sequential organic increase of 11% in comparison with the third quarter, both in Consulting & Systems Integration (+15%) and Managed Operations (+8%).
Financial Target
The Group confirms that the operating margin for 2005 will be slightly higher than 7.5%, and that it will achieve its net debt target of EUR 200 million at the end of December 2005.
Future Reporting Dates
This preliminary announcement is made in accordance with the regulations of the Autorite des Marches Financiers (AMF) in Paris. The group s full audited results for the year ended 31 December 2005 will be announced at 07:30 hrs (CET) on Wednesday 8 March 2006 and no further information will be released before that date.
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 revenues are more than EUR 5 billion and it employs over 46,000 people 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 Euronext Market Solutions, Atos Worldline and Atos Consulting.
Marie-Tatiana Collombert
Atos Origin
+33 (0) 1 55 91 26 33
marie-tatiana.collombert@atosorigin.com
Source: webwire
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