Atos H1 Operating Loss Increases After Charge

On Thursday, French technology company Atos reported a first-half operating loss due to impairment costs and lower revenues due to weaker demand in the Americas and Europe

Chief Financial Officer Jacques-François de Prest informed reporters that the demand for IT services has been typically weak in the Americas. At the same time, there has been a significant decrease in public sector orders, particularly in Germany and Europe.

Compared to a loss of 434 million euros in the same period a year ago, the company experienced an operating loss of 1.70 billion euros ($1.84 billion) for the six months ending in June.

It recorded impairment charges of 1.57 billion euros on certain assets due to a financial restructuring within the group and the termination of contracts with specific customers.

As it pursues a financial restructuring, Atos has recently secured 1.67 billion euros in funding from banks and bondholders.

The group is responsible for the cyber-security of the Paris Olympics, which is presently in progress, as well as the communication needs of the French army.

France’s government has been permitted to acquire a preferred share to safeguard strategic assets.

“I can confirm that there are no other disposals under consideration other than WorldGrid and (discussions with) the State on the scope of sensitive sovereign activities,” de Prest stated to reporters.

Jean Pierre Mustier, the organization’s new CEO, declared that his objectives include:

• The completion of the restructuring.
• The expansion of the organization.
• The restoration of client confidence.

He also stated that he would implement a new governance structure following the completion of the restructuring process, which would encompass a new shareholding structure.

According to the CEO, an individual with an industrial background must succeed him eventually.

After June, Atos’ net debt, amounting to 4.22 billion euros, had increased from 2.23 billion after 2023.