Sopra Steria to take multi-million euro hit on ransomware attack

Opt-in to Cyber Safety. Multiple layers of protection for your devices, online privacy and more.



IT services firm Sopra Steria says it expects the ransomware attack it suffered earlier this year to hit its operating margins by up to €50 million.

The company revealed in October that it had been hit by hackers using a new version of Ryuk ransomware.

It now says that the fallout, with various systems out of action, is likely to have a gross negative impact on operating margin of between €40 million and €50 million.

The group’s insurance coverage for cyber risks is EUR30 million, meaning that negative organic revenue growth for the year is now expected to be between 4.5% and five per cent (previously between two per cent and four per cent). Free cash flow is now expected to be between €50 million and €100 million (previously between €80 million and €120 million).

However, Sopra Steria says sales activity for the fourth quarter should not be significantly affected by the hack and that it has not identified any data leak.

Source…