Atos slides deeper into the red

Atos, struggling to restructure its business operations, has presented its financials for the first half of 2024. The ailing French IT services provider recorded an operating loss of €1.7 billion (about $1.8 billion)in the first six months of the year, compared to a loss of €434 million a year earlier; Its net loss for the half-year was €1.91 billion, compared to €600 million a year prevously.

Atos executives blamed weaker business as well as high depreciation and one-off impairment charges of almost €1.6 billion for the disappointing figures. The service provider’s revenue between January and June of this year amounted to €4.96 billion, down 10% year on year. Atos preferred to focus on the 2.7% decline at constant scope and exchange rates.

The Eviden division, in which Atos has bundled its most promising business areas, lost more than the legacy Tech Foundations side. Eviden’s sales fell by 4.2 percent year-on-year from €2.49 billion (at constant scope and exchange rates) to €2.39 billion. Tech Foundations’ revenue slipped by 1.4 percent from €2.61 billion to €2.58 billion. Originally, Atos had planned to split up much like IBM and Kyndryl did, selling Tech Foundations, but this plan was finally shattered at the beginning of 2024 and the service provider subsequently got more and more into financial difficulties.