Atos struggles across markets in Q3

Despite revenue decline, the French reseller says the results are consistent with the business plan

Atos today shared a drop in revenues in Q3 FY24, mostly due to the global market slowdown during a period of transformation for the company.

Q3 revenues were down 4.4 per cent to €2.3bn (£1.9bn), compared to last year’s €2.57bn.

Atos businesses, Eviden and Tech Foundations were down 6.4 per cent and 2.6 per cent respectively.

Even though Tech Foundations already struggled in Q1 with revenue down 1.7 per cent, Eviden was showing a moderate 2.9 per cent rise.

Although showing negative digits, the company says these results are consistent with the business plan communicated on September 2, 2024.

“With our financial restructuring plan and our new governance in place, Atos can confidently focus on its industrial turnaround and growth under the leadership of Philippe Salle,” said Jean-Pierre Mustier, CEO of Atos.

Salle is Atos’ current chairman of the board of directors and will become chairman and CEO of the company on February 1, 2025.

He will become the company’s eighth CEO in six years.

Atos businesses decline

Digital activities decreased in the high single-digits for Eviden, while big data & security (BDS) revenue was stable organically.

Revenue in digital security slightly decreased, despite the growth of mission critical systems, notably in central Europe.

For Tech Foundations core revenue decreased in the low single-digits, as stronger contributions related to the Paris Olympic & Paralympic games were offset by contract terminations in Americas and previously established contract scope and volume reduction in Northern Europe & APAC.

Non-core revenue declined high single-digit, reflecting contract completion in business-process outsourcing (BPO) activities in the UK.

Internationally, revenue decreased the most in the Americas, with a 10.5 per cent decline, from €606m to €500m year-on-year.

It was then followed by Northern Europe and APAC with a 6.6 per cent decline, 0.7 per cent in Southern Europe, and finally 0.4 per cent in Central Europe.

Revenue in others and global structures (Middle East, Africa, major events, and the group’s global delivery centres and global structures) proved to be satisfying with a double-digit growth, reflecting stronger contributions from the Paris Olympics & Paralympics and Atos performance in its nine African locations.

People (many) moves

These lesser results come in a time of many changes for Atos, as the reseller has appointed more CEOs in six years than the UK has had prime ministers since 2007.

Mustier became the seventh CEO in July 2024, replacing Paul Saleh after only seven months at the head of the company.

Atos said Saleh left after a French court started safeguarding proceedings relating to the company's proposed restructuring plan.

Salle, the current chairman of the board of directors, will become chairman and CEO of the company on February 1, 2025.

But the direction wasn’t the only thing to change this year.

Total headcount at the end of September 2024 was 82,211 at the end of September 2024, a 10.3 per cent decrease since the end of June 2024.

The headcount decreased after contract completions in Americas and the UK, as the reseller transferred almost 5,000 employees to the new providers.

Not including transfers, headcount has decreased by around five per cent.

The group also hired 1,839 staff members during the third quarter.