Atos sees revenues increase to €11.7 billion, driven by inorganic expansion

28 March 2017

Atos saw revenue hit €11.7 billion in 2016, on recorded growth of 9.7% year-on-year. The firm’s growth was largely driven by inorganic expansion, with organic growth at around 1.8%. The professional services firm plans to continue to expand inorganically in 2017, with a target of 6% assigned to M&A growth and 2% to organic growth.

Atos, a digital services and consulting firm, booked a positive year in terms of its financial results. The firm’s revenues increased by 9.7% year-on-year (12.8% at constant exchange rates) to €11.7 billion. Growth was largely the result of inorganic additions, with organic growth standing at 1.8%. Inorganic growth was realised through, among others, the acquisition of Engage ESM and Anthelio.

The firm managed to book growth across all sectors, with the Big Data & Cybersecurity arm the strongest performing business unit for the year. The United-Kingdom & Ireland, one of the firm's larger European markets, region saw a slight contraction in revenues of 0.4% to €1.8 billion.

Regarding the result, Chairman and CEO Thierry Bretons says, “In 2016, Atos achieved an excellent performance by overreaching all our financial commitments, including record margin improvement and free cash flow conversion. Accelerating innovation in cybersecurity, automation, and analytics, mirroring the booming demand from our customers, combined with a rigorous execution of our strategy were the key factors of this success. Our very solid financial performance materialised the alignment of our comprehensive Digital Transformation Factory with rising client needs.”

Atos sees global revenues increase to €11.7 billion

The firm’s operating margin too saw strong growth, up 9.4% in 2016 to €1.1 billion. The improvement, which beat the 8.4% increase noted the year previous, was partly the result of strong performances in the firm’s cloud-based business and the execution of efficiency programmes, as well as wider cost synergies won through its recently acquired Unify.

Free cashflow hit €579 million in 2016, up by 47.3% to the year previous, while the firm’s net income increased by 41.9% year-on-year to reach €620 million. 

For 2017 the firm aims to grow its revenues by 6% at constant exchange rates and b 2% organically, while its aims for operating margin growth stands at between 9.5% and 10.0% of revenue.

Bretons reflects about the firm’s aims going forward, “With this record performance, Atos’ teams have built a unique foundation to deliver our new 3-year plan '2019 Ambition', matching new expectations of our clients, gaining new market shares, driving more profitable growth and cash generation, while continuing to enhance value creation for our shareholders.”


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PA Consulting results reveal record 14% revenue growth

17 April 2019

Global professional services firm PA Consulting has reported another year of strong growth, outpacing the global consulting market significantly over the duration of 2018. PA’s revenue boomed by 14%, passing £455.8 million over the course of the year.

Founded in 1943, by Englishmen Ernest Butten, Tom Kirkham and David Seymour, the firm once known as Personnel Administration has since gone on to become one of the largest consulting firms in the world. PA Consulting Group, as it is now known, has over 2,600 professionals and a global presence spanning 18 countries. While turnover took a decade to recover from a rocky spell after the global financial crisis, PA Consulting is now firmly on the upward incline.

PA has booked strong growth in recent years, following its securing of private equity investment from the Carlyle Group in 2015. While the first full year of results following that move were slightly muted, due in part to the altering of how PA measured its results, the decision has clearly paid dividends since. Revenues jumped by 6% in 2017, hitting an all-time high of £400 million in the process.

Annual consulting revenues of PA Consulting versus UK market

Now, in the latest chapter of the firm’s rapid turnaround, the innovation and transformation consultancy has revealed things only got better in 2018. A set of record results released in April have confirmed that fee income rocketed up by 14% over the course of the prior 12 months, hitting £455.8 million. Considering the UK’s consulting market saw growth slow for the second year running (just 5.6%), PA’s performance is even more pronounced, especially in its first year of full results since influential Chair Marcus Agius stood down. 

The firm is also outpacing the global consulting market. Analytics firm Statista estimates that the consulting market expanded by 4.08% in 2018. As a result of such bullish demand, PA Consulting has also bolstered its staffing, boosting its consulting team’s headcount by 10% in the space of 12 months. 

PA’s team was further strengthened with its continued acquisition campaign, which brought three new firms into the fold during 2018. Boston-based innovation company Essential Design, specialist digital service design firm We Are Friday and London-based digital insight and strategy consultancy Sparkler all became part of PA over the course of the year. PA has also announced plans to recruit 400 professionals for its new digital centre in Belfast. 

‘Not traditional’

In terms of client work, in the UK PA supported Skipping Rocks Lab to create an edible alternative to single use plastic drink packaging, and worked on a notable restructuring project at disability charity Scope. Further afield, PA helped Norwegian authorities deliver their citizen-facing digital services, while in the US and India, PA partnered with Virgin Hyperloop One to build the first new mode of transport in a century, one that hopes to revolutionise travel. It even worked with United Nations to identify the technologies most likely to contribute to the achievement of the organization's Sustainable Development Goals.

Commenting on the year’s performance, Alan Middleton, PA Consulting CEO, said, “We’re not a traditional consulting firm and we think this is key to our ongoing success and why 98% of our clients recommend us… Our people are strategists, technologists, digital experts, consultants, designers, scientists and engineers – all of whom bring real-world experience, and apply it at pace. We offer the innovation, design, digital and transformation skills that our clients need to change, fast. There’s a sense of optimism behind our purpose. And it’s a feeling that inspires our people as well as our clients.”

The existing staff of PA also enjoyed a bumper year, as it was revealed that a refinancing manoeuver at the firm was expected to land over 1,000 employee shareholders a significant pay-out. The firm’s debt, which includes vendor loan notes put in place when Carlyle purchased the firm, is set to be refinanced in a deal worth £350 million.