Atos shares are trading lower Monday, as the French IT firm reported disappointing revenue growth in its latest earnings release. That information superseded news the firm is set to buy US IT services provider, Syntel Inc for $3.4 billion.
By 1230 BST, Atos shares were 6.78% lower at €114.80. The stock has been broadly higher in recent weeks.
Atos earnings details
The French-based IT services provider said earlier Monday, that total revenue grew 1.7% in the first six months of the year, compared with the same period a year earlier. Atos said a specific management issue in North America detracted from the firm’s revenue gains.
Other details were more upbeat, however.
Big data and cybersecurity revenues surged 13.1% to €429 million in H1, as cybersecurity business across the larger geographical regions boosted performance.
“During the first half of the year we confirmed a strong commercial dynamic consolidating our strategy to accompany our customers all along their digital transformation,” said Atos Chairman and CEO, Thierry Breton.
“The commercial activity was particularly high in North America in Q2 with a book to bill ratio at 190%. In the meantime, we continued to closely monitor our operational efficiency, improving the Group profitability and increasing EPS by circa 8 %. In this context, we confirm all our objectives for 2018 towards our 2019 Ambition,” he added.
Atos announced on Sunday, its plan to purchase US IT services provider Syntel. The move will bolster its US presence and help support business growth plans. The French firm said the purchase should add around $1 billion revenue growth once the deal is finalised.
“I am very proud to announce such an important milestone in Atos’ leadership development with the acquisition of Syntel, a leading digital company,” Breton said.
“In particular, the highly complementary portfolio, customer base, and geographic footprint of the combination between Atos and Syntel will significantly enhance our presence in North America and accelerate the digital transformation of Atos’s customers worldwide,” he added.