Atos's market cap, dividends, sales and earnings in 2020

  •   DEHOUI Lionel

Founded in 1997, Atos is a French digital services company. It is one of the 10 largest NSEs in the world. The group is recognised as the international leader in digital transformation. It is present in 71 countries and has nearly 105,000 employees worldwide. Find out more about the company's annual results for the year 2020 here.

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Atos's market cap, dividends, sales and earnings in 2020
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Lower revenue for the year 2020

In fiscal year 2020, the Atos Group generated revenue of EUR 11,181 million, compared to EUR 11,529 million in the previous year. This represents an organic decline of 3.0% year-on-year. At constant exchange rates, sales were down by 2.3%.

This underperformance is due in particular to the impact of the Covid-19 health crisis on the company's business during the year. Most of the countries in which the group operates have imposed restrictions and closures in response to the pandemic. This has not been conducive to the smooth running of the company's business.

However, the group was able to limit the fall in revenue thanks to its resilient business profile. It benefited from the strong demand for Digital Workplace solutions to support remote working, cloud migrations, and Big Data & Cybersecurity services.

However, the postponement of application projects affected the company's revenues. They were also impacted by fertilisation on existing contracts.

 

Performance of other financial indicators in 2020

For the full twelve months of 2020, Atos Group recorded an operating margin of €1,002 million (representing 9.0% of revenue), compared to €1,163 million (10.1% of revenue) in 2019. It decreased by 112 basis points year-on-year.

Normalized net income, group share, came to €725 million in 2020, compared with €834 million a year earlier. The group's share of net income will be €550 million, compared with €414 million in 2019.

For the 2020 financial year, the company's Gross Operating Profit (GOE) reached 1,661 million euros. A year earlier, it had amounted to 1,802 million euros. In 2020, the EBO rate is 14.9%, compared to 15.5% in 2019.

In 2020, Atos' operating profit is EUR 650 million, compared to EUR 660 million a year earlier. In addition, the group's financial result improved significantly over the year as a whole. 51 million, compared to a loss of 208 million euros in the previous year.

 

Annual balance sheet by group business segment

In 2020, revenues in the Industries segment amounted to EUR 2,010 million, compared with EUR 2,224 million in the previous year. 2,224 million in the previous year, a decrease of 9.6% on an organic basis and 9.3% at constant exchange rates. The operating margin was €67 million (3.3% of sales), compared to €124 million (5.6% of sales) in 2019.

In fiscal year 2020, the Financial Services and Insurance segment generated revenue of €2,116 million, compared with €2,196 million in 2019. It declined by 3.6% organically and by 2.5% at constant exchange rates. The operating margin represented 12.3% of sales and amounted to €261 million, compared to €299 million (13.6% of sales) a year earlier.

2,387 million in the previous year. 2,387 million in the previous year. This represents a significant increase of 7.5% (organic and at constant exchange rates). The operating margin also increased from €242 million in 2019 to €259 million in 2020, representing 10.1% of sales.

At the end of December 2020, the Telecommunications, Media & Technology segment's revenue amounted to €1,574 million, compared to €1,662 million in the same period of the previous year. 1,662 million in the same period last year. This represents an organic decline of 5.3% and a decline of 3.7% at constant exchange rates. The operating margin reached €134 million (8.5% of sales), compared with €132 million (7.9% of sales) in 2019.

For the year 2020, the Resources & Services segment posted revenues of €1,627 million, compared to €1,782 million a year earlier. 1,782 million a year earlier, down 8.7% on an organic basis and 7.9% at constant exchange rates. 121 million (representing 7.4% of sales), compared to 203 million euros (11.4% of sales) at the end of the previous year.

In 2020, the Health & Life Sciences segment grew. Its sales increased by 0.7% (organic) to €1,288 million from €1,278 million in 2019. At constant exchange rates, it grew by 1.4%. The segment's operating margin was €160 million (12.4% of sales), compared with €164 million (12.8% of sales) in the previous year.

 

Financial structure at the end of 2020

For the full year 2020, operating investments amount to EUR -320 million. They represent 2.9% of sales, compared with 2.8% in 2019. The change in working capital requirements amounted to -€63 million, compared with -€130 million the year before. Taxes paid are estimated at -113 million euros, compared to -99 million euros in the previous year.

The cost of net financial debt decreased to -33 million euros at the end of December 2020, compared to -64 million euros a year earlier. At the end of 2020, Atos will have an estimated cash flow of EUR 513 million, compared to EUR 605 million at the end of 2019.

At 31 December 2020, the company had a net debt of EUR -467 million, compared to EUR -1,736 million at the same date in 2019.

 

Atos' dividend and market capitalisation in 2020

At its meeting on 17 February 2021, the Board of Directors of the Atos Group decided to propose (at the company's Annual General Meeting) the payment of a dividend of EUR 0.90 per share for the financial year 2020.

In addition, the company is listed on the Paris Stock Exchange on the Euronext market. In 2020, its market capitalisation will be EUR 4.779 billion.

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