(Bloomberg) -- Atos SE cut its outlook for the year and revised its business plan through 2027 after some clients terminated or delayed awarding contracts with the embattled French IT company.
The company now sees revenue of €9.7 billion ($10.7 billion) for 2024, compared with €9.8 billion previously announced, and an operating margin of 2.4% instead of 2.9%, according to a statement on Monday. In the longer term, for 2027, Atos cut its revenue target to €10.6 billion from the €11 billion.
The revised approach will not have an impact on the financial restructuring plan agreed upon by most creditors in July, Atos said in the statement.
Atos, a key supplier to both the French nuclear industry and the Olympic Games, has struggled with huge debts, accounting errors and industry-wide headwinds that have wiped out nearly €12 billion of its market value over the past seven years. The company has been undergoing a formal restructuring process with creditors and banks since February to avoid bankruptcy.
The company said it lowered revenue projections for its Big Data and Security business, which includes cybersecurity and supercomputers, “to align with current business momentum,” while its legacy IT outsourcing unit, Tech Foundations, will be hit by “contract terminations or lower scope of work as well as future client activity expectations.”
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