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French IT company Atos has cut its full-year revenue growth forecast less than 10 weeks before year-end, citing disappointing results in Germany and North America and an uncertain and challenging global economic environment.
The announcement sent shares down almost 20 per cent, wiping almost €2bn off the company’s market value.
Atos, which has operations spanning cloud computing, big data and cyber security, had expected organic revenue growth in 2018 of between 2 to 3 per cent. But on Tuesday the company announced it was now targeting growth of just 1 per cent.
Chief executive Thierry Breton said in a statement that the company’s infrastructure and data management division — Atos’s largest — had delivered disappointing third-quarter results in North America and in Germany.
“Taking this into account, and in the current context of an international economic environment that I anticipate to become more uncertain and challenging, I want to be cautious,” he said.
Revenue in the third quarter clocked in at €2.9bn, a year-on-year organic rise of 0.1 per cent, with growth in its smaller units including big data and cyber security and its Worldline payment terminals arm offset by the decline in infrastructure and data management where organic revenues fell 4.6 per cent.
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