Atos H1 operating loss widens to 1.70 billion euros

French tech company Atos on Thursday said its operating loss widened in the first half of 2024 due to an impairment charge and both of its main business units reporting lower sales on soft demand in the Americas and parts of Europe.

It posted an operating loss of 1.70 billion euros ($1.84 billion) for the six months to end-June, versus a loss of 434 million euros in the same period a year earlier.

Atos said it booked a non-cash impairment charge of 1.57 billion euros on some of its assets, also due to some contract terminations with customers.

Its costs were also impacted by higher marketing spending for major sports events. Atos handles cyber-security for events such as the 2024 Euros and the Paris Olympics which are underway.

It recently secured 1.67 billion euros in funding from banks and bondholders as it pursues a financial restructuring.

“We now have an agreement with our financial creditors that provides ample liquidity to run the company and establishes strong foundations for the company’s future,” its new CEO Jean Pierre Mustier said in a statement.

By the end of June, Atos had a net debt if 4.22 billion euros, up from 2.23 billion a year earlier, it said on Thursday.