Atos, a global leader in digital transformation, today announces its financial results for the first half of 2017.

Thierry Breton, Chairman and CEO said: “Our customers are more than ever facing massive interconnections and data flows. This brings multiple challenges but also significant opportunities to leverage the digital transformation of our customers, to help them reinvent their own business models, improve their own customers’ experience, and optimize their operations. By mastering all critical technologies, either on our own or through key partners, we are fully organized to provide the best scientific and business outcomes to our customers out of their massive data flows, while protecting them from very fast growing and multiple cyber threats.

During the first semester, to answer our customers’ end-to-end new requirements, we continued to invest significantly in Big Data technologies. This reinforces Atos’ positions in Data Management and Automation, in Digital Transformation and Cognitive Solutions, in Big Data and Artificial Intelligence, in Predictive Cybersecurity, and also in Quantum Computing Simulation. I am proud to have recently celebrated with our scientists the 5,000^th patent of the Group.

Atos’ technology leap creates a strong momentum within all our markets and has materialized into the strongest H1 ever. This makes us very confident to deliver our 3-year plan and we confirm all our objectives for 2017.”

H1 2017 performance by Division

Revenue was € 6,311 million, up +11.6% at constant exchange rates and +2.2% organically. The Group reached +2.4% organic growth in the second quarter of 2017, strengthening the positive trend already performed in the first quarter. All the Divisions contributed to revenue organic growth thanks to a strong commercial momentum and to the investment strategy in innovation and technology.

Operating margin was € 538 million, representing 8.5% of revenue, an improvement of +190 basis pointsfueled by Infrastructure & Data Management (+240 basis points), Business & Platform Solutions (+120 basis points), and Worldline (+240 basis points).

Representing 57% of the Group revenue in the first half of 2017, Infrastructure & Data Management (IDM)revenue was € 3,589 million, up +0.9% at constant scope and exchange rates. The business continued to be led by the deployment of Orchestrated Hybrid Cloud solutions and the reinforcement of Atos leadership in Digital Workplace. In particular, growth materialized in the United Kingdom & Ireland and in Benelux & The Nordics thanks to the successful ramp up of new contracts and higher volumes with long-standing customers, as well as in Asia-Pacific led by strong activity in Financial Services. 

Revenue in Infrastructure & Data Management was up +1.0% organically during the second quarter of 2017

Operating margin was € 329 million, representing 9.2% of revenue, up +240 basis points compared to H1 2016. This strong improvement came from cloud-based infrastructures, automation and robotization, and industrialization. Profitability improved in all geographies. The Division benefitted from the execution of the Unify restructuring plan, completed at the end of 2016, as well as continuous operational cost optimization.

Representing 25% of the Group, Business & Platform Solutions revenue was € 1,608 million, up +2.6% at constant scope and exchange rates, confirming the positive trend recorded in the last quarters. The Division increased its competitiveness thanks to a more efficient workforce management and the industrialization of its global delivery centers. The Division is also shifting to high value digital transformation projects and revenue growth was led by the Digital Transformation Factory in particular with the implementation of Industry 4.0 solutions for large manufacturers. The Division growth materialized in Germany, Middle East & Africa, and in Central & Eastern Europe.

Revenue organic growth reached +2.7% in Q2 2017.

Operating margin was € 98 million, representing 6.1% of revenue, an improvement by +120 basis points at constant scope and exchange rates. This was mainly attributable to the industrializing of application services, the successful global workforce management, and the implementation of robotization.

Revenue in Big Data & Cybersecurity was € 357 million in the first half of 2017, up +13.8% organically. The Division is facing a much stronger demand due on one side to very fast growing cyber threats and on the other side to massive interconnections and data flows requiring Big Data capacities. In this context and thanks to its tier one positioning, the Division pursued its fast development with new customers in the United Kingdom and North America and also in the research area in France.

In Q2 2017, Big Data & Cybersecurity Division recorded a revenue organic growth at +14.2%.

Operating margin was € 43 million, representing 12.2% of revenue. The Division achieved to maintain a high-level of profitability while continuing to record strong organic revenue growth, to invest in innovative solutions and products, and to extend its international footprint.

From a contributive perspective to Atos, Worldline revenue was € 757 million, growing by +2.3% at constant scope and exchange rates. Financial Processing revenue grew by +6.1% organically, notably led by Issuing Processing (issuing transaction volume increase, high-level of fraud management services in Belgium, and continued strong growth in authentication services) and Acquiring Processing with increased volumes and more projects in France and in Italy. Merchant Services was up by +5.2% organically, benefiting from higher Commercial Acquiring volumes in Continental Europe as well as from the strong momentum in India following the Demonetization Act. In Mobility & e-Transactional Services, on-line activities such as Trusted Digitization, e-Ticketing, Connected Living and Educational Cloud, mitigated the effect of the Radar contract in France, which will not affect Worldline growth any further as of Q3 this year.

Revenue increased by +2.6% organically in Q2 2017.

Operating margin was € 114 million or 15.0% of revenue, improving by +240 basis points compared to the first semester of 2016 at constant scope and exchange rates, largely fueled by the strong revenue growth in Financial Processing, coupled with the fast delivery of equensWorldline costs synergies.