By July 28, 2023 (Reuters) – Atos, the prominent IT consultancy group based in France, has recently announced an optimistic outlook for its annual organic revenue, citing a surge in commercial traction and high demand for its services. The company revealed its plans to enhance divestments, seeking to strengthen its financial position and streamline its operations.
As of the latest announcement, Atos has raised its expectations for 2023 organic revenue, anticipating it to either match last year’s figures or witness a growth of up to 2%. This revision marks a significant improvement from the previously projected range of -1% to 1%, underscoring the company’s renewed confidence in its business prospects.
The tech giant has been grappling with some challenges in recent times, prompting a strategic approach to address its financial concerns. As part of its efforts to optimize its portfolio, Atos initiated a 700 million euro divestment program last year. However, given the positive momentum and the growing interest from potential investors, the company now intends to bolster its divestment program by an additional 400 million euros.
The move to divest non-core assets is aimed at strengthening Atos’s financial foundation, allowing it to focus on its core competencies and high-potential growth areas. It also aligns with the company’s commitment to adapt to the evolving market landscape and enhance shareholder value.
One key divestment milestone for Atos is the completion of the sale of its sustainability consultancy unit, Ecoact, to Schneider Electric. The transaction is expected to be finalized by the end of 2023, contributing significantly to achieving the initial divestment target.
Senior Executive Vice President Diane Galbe emphasized that the company had already received signals of interest for assets identified in its supplementary divestment plan. This positive response from potential buyers further validates Atos’s strategic decision to pursue divestments and indicates that the company’s assets are perceived as valuable and attractive in the market.
Despite these optimistic developments, Atos reported a revenue figure of 5.5 billion euros ($6 billion) for the first six months through June, which was slightly below the 5.57 billion euros expected by analysts polled by Refinitiv Eikon. While the revenue figure fell short of projections, it is essential to consider the broader context of the company’s ongoing efforts to enhance its financial performance and streamline operations through divestments.
Atos’s decision to raise its revenue target showcases the company’s determination to capitalize on improving market conditions and meet growing demand for its services. By strategically divesting non-core assets, Atos aims to optimize its portfolio, enhance its financial position, and position itself for sustainable growth in the dynamic IT consultancy industry. As the company continues its divestment program and explores new avenues for expansion, stakeholders eagerly await the realization of these strategic initiatives and their impact on Atos’s future performance.
