Atos descends downward spiral in FY24 results

UKI leads European revenue decline with double-digit dip

After a tumultuous year marked by three different CEOs and tough quarters, French reseller Atos shared plunging results in FY24.

Revenue went down 10.4 per cent, landing at €9.58bn (£7.99bn) compared to €10.69bn last year.

The company said its performance was impacted by the terminations of previously established contract and scope reductions, as well as market softness across different regions.

Globally, Atos’ business divisions Eviden and Tech Foundations both respectively dipped by 6.7 per cent (FY24: €4.6bn, FY23: €5.08bn) and 4.1 per cent (FY24: €4.97bn FY23: €5.6bn) this fiscal year.

The UKI was the geography where the French organisation experienced the worst decline, as revenue dropped 14.1 per cent organically, sliding to €1.5bn compared to €1.77bn the year prior.

Eviden’s sales in the region went down double-digits, due to a decrease in digital revenue caused by contract completions and volume reduction in the public sector, as well as a slump in big data & security (BDS), following the cessation of a low margin “computing as a service” offering.

Tech Foundations’ earnings also went through a double-digit fall, due to contract completion in public sector activities.

In the rest of EMEA, revenue deteriorated in Central and Southern Europe, as the regions respectively declined 2.1 per cent organically (€2.2bn this year, €2.5bn in FY23) and 1.9 per cent organically (€2.08bn in FY24, compared to €2.28bn the year prior).

Benelux and the Nordics, which Atos gathered as one region, has been the reseller’s last bastion of growth in Europe, as income grew by 4.6 per cent organically, rising to €946m compared to €911m in FY23.

These results follow a tough year for the company, which has been going through a period of struggle from Q1 all the way to Q3 this year.

“During the fourth quarter, our commercial activity recovered thanks to the positive change of perception of our clients, who took note of the improvement of our credit rating,” said Philippe Salle, chairman of the board of directors and CEO of Atos.

“This positive commercial momentum materialised in renewals or extensions of large strategic multi-year contracts.”

Salle took over as CEO of the company on 1 February, becoming the third incumbent of the role since January 2024, following Paul Saleh and Jean-Pierre Mustier.