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

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.

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

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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.

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