Altran: Aricent back to growth in Q2!
We eagerly awaited the earnings from Altran in H1 2019 to understand if Aricent would resume growth, as guided by Altran.
Aricent, indeed, resumed growth in Q2 2019, with revenues up 4% yoy at CC (+10%). Communications, which had been impacted by fraudulent revenue recognition last year, was back to growth thanks to 5G projects and Altran’s 5G software product. This is good news.
Having said the reorganization of what become Altran North America continues: among the goods news,
Outside of North America, Altran slowed down in Germany, impacted by market conditions in the automotive market, and the completion of large contracts. German automotive OEMs are also suffering in China, which impacted Altran’s growth in this geo too. The company will resume “tangible” growth in Q4 but expects the difficult automotive market conditions to remain in Germany and China.
Finally, Altran managed well the impact of the cyberattack on its financials, impacted H1 revenues by EUR 34m, including lost revenues and remediation costs. Insurance policies will reimburse about EUR 19m, We understand the net impact is EUR 16m.
In total, despite difficulties in North America, Germany