Atos has announced another downward revision of its 2021 financial forecast.
The services giant now expects a revenue drop of 2.6 percent at constant currency to €10.8 billion, compared to its previous forecast of a 2.4 percent dip from last month.
The group also predicts its operating margin to come in at 3.5 percent versus the four percent announced in January. The free cash flow remains unchanged at negative €420 million.
Atos confirmed it will report its full-year earnings on February 28, as well as its 2022 plan.
This is the third profit warning in eight months for the company, which recently named a new CEO following the unexplained departure of the previous chief executive, just days after its second forecast revision.
Atos added it will book impairments of €1.9 billion in goodwill and other non-current assets, and a further €0.5 billion in H2 2021 for contract assets, reserves for bad debts and provision for future losses.
It said this resulted mainly from the reassessment of contracts including the financial services BPO contract in the UK, and the group’s strategic repositioning to focus on Digital, Cloud, Security and Decarbonization activities, away from classic infrastructure services and UCaaS.
“In light of this change in strategy and the refocusing on growing services, the Group conducted a comprehensive analysis of future recoverability of assets and profitability of legacy contracts”, Atos said in a statement.
