PARIS (Reuters) – French IT consulting firm Atos said late on Wednesday that it took total writedowns of 2.4 billion euros ($2.74 billion) in the second-half of 2021 as part of a reshuffling of the group around three core activities.
The impairment charges are divided up between a write-down of about 1.9 billion euros affecting its goodwill and non-current assets.
This comes on top of an impairment of about 500 million euros of contract asset, reserves for bad debts and provision for future losses, the company said.
The struggling group, which suffered a series of setbacks that let to the replacement of its CEO last year, also issued a second profit warning since the start of the year.
It said that its operating margin in 2021 will be around 3.5% in 2021. On Jan. 10, it said this margin would be around 4%.
It said it now forecast a decrease of its 2021 revenue of about 2.6% to 10.8 billion euros, compared with a previous forecast of a decrease of 2.4%.
($1 = 0.8757 euros)
(Reporting by Mathieu Rosemain; editing by Jason Neely)
