Record loss for IT service provider Atos, on which many government institutions depend

Atos suffered a net loss of 3.44 billion euros last year, according to annual figures that the ICT group presented on Tuesday morning. That loss is more than three times greater than in 2022. The loss is mainly attributed to a write-down of 2.55 billion euros on the value of business units. At more than 10.6 billion euros, turnover remained approximately the same as a year earlier.

Never before has the French IT service provider recorded such a large net loss. Atos is in discussions with banks and other lenders about a refinancing, it announced. It hopes to be able to make agreements with current creditors by July at the latest. The company has a total debt of 4.65 billion euros, of which 3.65 billion euros must be repaid before the end of 2025. If attracting new capital or selling parts is not successful, Atos’ survival is at risk.

NRC revealed on Tuesday that several Dutch government services are concerned about the services provided by Atos. The Ministry of Defense, the Social Insurance Bank and the Care Assessment Center, among others, have taken measures to prevent them from running into problems if Atos were to disappear as an IT supplier.

For the time being, Atos says it has sufficient resources to continue business operations. “The discussions with creditors and banks have nothing to do with the company itself, nor with our customers or suppliers,” CEO Paul Saleh said in an explanation.

Sales attempts

Lately, Atos has been trying to raise money by selling business units to Czech billionaire Daniel Kretinsky and aircraft manufacturer Airbus. Both attempts failed.

“We are now weighing alternative options that are in the interests of our customers, employees, creditors and shareholders,” Saleh said. According to him, the company expressly takes into account the “needs of the French state”.

The tech company is of great strategic importance to the French government. For example, the army uses an Atos supercomputer to simulate nuclear tests and Atos supplies management systems for nuclear power plants. Atos is also responsible for digital security surrounding the Olympic Games in Paris, which will be held next summer. The current financial problems will not endanger the organization of the Games, the CEO promises.

French Economy Minister Bruno Le Maire announced last week a “national solution” for Atos, in which “all French interests are guaranteed”. It is not clear what this means for the foreign parts of the group.

Investors reacted negatively to the results published by Atos. After the annual results were announced, the stock price fell by almost 8 percent on Tuesday. Atos’s valuation is now 77 percent lower than at the beginning of this year, and 98 percent lower than at its peak in February 2020. The presentation of the annual figures was previously postponed twice.

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