Debt-ridden French IT group Atos, the cybersecurity and data provider for the Paris Olympics, on Tuesday posted a huge annual loss, but vowed its problems would not disrupt the Games.
The company, which plans to send Olympic and Paralympic results to broadcasters and media almost instantly during the Summer Games, said it was in talks with creditors to restructure its debt by July.
Atos has been a technical partner of the International Olympic Committee since the 2002 Salt Lake City Winter Games and is responsible for managing over 300,000 certifications.
After twice postponing its annual results, Atos on Tuesday reported a net loss of 3.4 billion euros ($3.7 billion) in 2023 due to asset writedowns.
Atos also has a contract with the French government, which requires it to repay or refinance 3.65 billion euros in loans and bonds that mature by the end of 2025.
“We have no concerns about the Olympics,” Atos CEO Paul Saleh said in a conference call.
“We have just completed the operational level testing phase, which has been very well received by everyone,” Saleh said.
The company's shares fell 7% to 1.60 euros on the Paris stock exchange around noon. Atos shares were worth 15 euros in late July 2023.
～“Absolute confidence”～
The Olympic organizing committee said last week that it had “full confidence in the Athos team to honor its binding agreements” with the IOC and the Paris Games.
Atos' cybersecurity arm, Eviden, provides cybersecurity across the information systems of the Games, Olympic venues, staff and volunteers.
Organizers expect the Olympics, which run from July 26 to August 11, to be targeted by cyberattacks.
The company, which has 95,000 employees, has 300 staff dedicated to the Games and will provide services 24 hours a day during the Games.
To allay concerns, Athos organized a media visit to its Technology Operations Center. The company describes the center as a “technology control and command center that oversees all 63 Olympic and Paralympic competition and non-competition venues.”
Atos is also responsible for integrating other technology partners, including telco Orange, digital services company Intel, communications equipment provider Cisco, timekeeper Omega and audio-video company Panasonic.
– “Family Jewelry” –
Concern over the company's future grew last week after talks to sell its big data and security business to European aerospace giant Airbus for between 1.5 billion and 1.8 billion euros collapsed.
In February, Atos failed to reach an agreement to sell part of its business to Czech businessman Daniel Krechinsky.
David Rayani, head of One Point, Atos' largest shareholder, told Le Figaro on Sunday that he was opposed to the asset sale.
“The time to have to sell your family jewelry is not the time to reinvent yourself and start over,” Rayani said.
Saleh said in Tuesday's financial statement that Atos was “in discussions with its financial creditors with the aim of reaching a refinancing plan by July within the framework of an amicable conciliation process.”
“While our operating margin improved year over year, reflecting the execution of our cost improvement plan, our cash flow was impacted by workforce optimization, separation costs and working capital reductions,” he said. ” he said.
The company said it had €2.4 billion in cash and financial assets to cover its liquidity needs until it reached an agreement with its creditors.
Atos announced that it had entered into an “amicable mediation process” with its creditors. The mediation process lasts four months under French law and can be extended for one month.
The group plans to present the parameters of the refining framework to creditors in the week of April 8.
Analysts at financial services group OddBHF said: “This refinancing would require debt restructuring, including significant debt write-offs by creditors, and would represent significant dilution for shareholders.''
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