- Accelerating business growth in the third quarter, with
revenue gaining +12.3% like‑for‑like*
- Agile response to the crisis and a return to robust growth
since June, led by faster expansion of the digital economy and the
strong Group’s sales momentum
- 2020 guidance raised
- Reaffirmed confidence in the Group’s growth outlook through
2022
Regulatory News:
Teleperformance (Paris:TEP), a leading global group in digitally
integrated business services, today released its quarterly and
nine-month revenue for the period ended September 30, 2020.
Accelerating revenue growth in the third quarter
- Third-quarter 2020: €1,428 million, up +12.3%
like-for-like*
- Nine months 2020: €4,088 million, up +7.4% like-for-like*
Quick and agile response to seize market growth
opportunities
- More than 200,000 active Teleperformance employees working from
home as of end-September, versus fewer than 10,000 before the
health crisis
- Rapid deployment of TP Cloud Campus, an integrated, cloud-based
solution that recreates a comprehensive virtual ecosystem for the
efficient, sustainable management of remote work-from-home (WFH)
teams
- A strong commitment to both WFH and on-site employees,
reflected in the top employer certifications renewed or earned
since the beginning of the year in 23 countries
Full-year 2020 revenue growth target raised
- Very strong sales momentum
- Full-year, like-for-like* revenue growth of around +8.0%,
versus the previously announced target of “around +6%”
- Confirmed target for an EBITA margin before non-recurring items
of at least 12.5%
Confirmation of 2022 objectives
- Revenue of around €7 billion in 2022, including acquisitions in
high value-added services
- Average like-for-like* growth of at least +6% per year over the
2020-2022 period
- EBITA margin of around 14.5% in 2022
* At constant exchange rates and scope of consolidation
Commenting on this performance, Teleperformance Chairman and
Chief Executive Officer Daniel Julien said: “We delivered an
excellent performance in the third quarter, with more than +12%
like-for-like growth in revenue over the period. This was much
faster than in the first half, despite the very sharp decline in
TLScontact’s visa application management business and a high basis
of comparison. This performance shows that the sustained upturn in
growth since June is continuing apace, particularly in Europe and
the Ibero-LATAM region. It also reflects Teleperformance’s agility
in quickly aligning its operating model with the new normal
emerging from the unprecedented global health crisis.
With 200,000 people now working from home, Teleperformance is
protecting its employees, while the ongoing roll-out of the
optimized TP Cloud Campus digital solution is improving their
well-being and engagement. This is also enabling us to continue to
deliver above-market growth.
We are steadily pursuing our robust business development by
leveraging the same resilient value creation model built on
seamless client relationships, technological innovation, security
and our reputation as the market’s preferred employer. In this
regard, the many Great Place to Work® certifications earned since
the beginning of the year – including for the first time in Germany
for our WFH model, in the United Kingdom, Spain, Peru and Egypt –
further attest to our employees’ engagement and confidence in the
Group and its future projects.
Based on this solid momentum, we are raising our guidance for
annual, like-for-like revenue growth to around +8% in 2020 and are
maintaining our operating margin target. We are also reaffirming
our 2022 business development objectives. This favorable outlook
amid the current crisis reflects our unique positioning as a
global, agile solutions provider, as well as our confidence in the
success of the Group’s transformation to respond effectively to the
constantly changing needs of our clients.”
Nine-month and third-quarter 2020 Group revenue
€ millions
2020
2019
% change
Like-for-like
Reported
Average exchange rate (9 months)
€1 = US$1.13
€1 = US$1.12
9 months
4,088
3,916
+7.4%
+4.4%
Third quarter
1,428
1,352
+12.3%
+5.6%
Consolidated revenue
Revenue amounted to €4,088 million for the first nine months
of 2020, a year-on-year increase of +7.4% at constant exchange
rates and scope of consolidation (like-for-like) and of +4.4%
as reported. The unfavorable currency effect, which totaled a
negative €111 million, stemmed primarily from the decline against
the euro in the main Latin American currencies, the Indian rupee
and, more recently in the third quarter, the US dollar.
The like-for-like gain for the nine-month period was supported
by the strong +9.9% growth in the Core Services & D.I.B.S.
businesses. Despite the sustained expansion in the LanguageLine
Solutions business, revenue from Specialized Services declined by
-8.0% due to the virtual shutdown of TLScontact’s visa application
management operations since the beginning of the health crisis.
Third-quarter 2020 revenue came in at €1,428 million,
representing a year-on-year increase of +12.3% like-for-like.
After the robust performance delivered in the first half despite
the full impact of Covid-19 between mid-March and end-May, the
upturn in business growth that began in June continued at a much
faster pace in the third quarter, led by the Ibero-LATAM and
Continental Europe & MEA regions and the LanguageLine Solutions
unit.
Revenue by activity
Nine months 2020
Nine months 2019
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
3,609
3,392
+9.9%
+6.4%
English-speaking & Asia-Pacific
(EWAP)
1,285
1,241
+3.2%
+3.6%
Ibero-LATAM
1,111
983
+23.9%
+13.0%
Continental Europe & MEA (CEMEA)
883
786
+13.2%
+12.3%
India & Middle East**
330
382
-8.9%
-13.5%
SPECIALIZED SERVICES
479
524
-8.0%
-8.6%
TOTAL
4,088
3,916
+7.4%
+4.4%
Q3 2020
Q3 2019
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
1,265
1,171
+14.9%
+8.0%
English-speaking & Asia-Pacific
(EWAP)
429
440
+0.0%
-2.5%
Ibero-LATAM
400
338
+34.9%
+18.2%
Continental Europe & MEA (CEMEA)
321
266
+23.0%
+20.6%
India & Middle East**
115
127
+0.6%
-9.3%
SPECIALIZED SERVICES
163
181
-4.6%
-9.6%
TOTAL
1,428
1,352
+12.3%
+5.6%
* Digital Integrated Business Services ** Ex-Intelenet
operations in the Middle East
Core Services & D.I.B.S. revenue amounted to €3,609 million
in the first nine months of 2020, a year-on-year increase of +9.9%
like-for-like. The reported gain of +6.4% primarily reflected the
decline against the euro in the main Latin American currencies, the
Indian rupee and, more recently, the US dollar.
Propelled by the ramp-up of recently awarded contracts and the
start-up of new contracts signed during the crisis, like-for-like
growth accelerated in the third quarter compared with the first
half, particularly in the Ibero-LATAM and CEMEA regions.
- English-speaking & Asia-Pacific (EWAP)
In the EWAP region, revenue for the first nine months of 2020
stood at €1,285 million, an increase of +3.2% like-for-like and of
+3.6% as reported, lifted by the dollar’s rise against the euro
over the first six months of the year. In the third quarter,
like-for-like revenue was stable year-on-year.
In North America, the global health crisis continued to weigh on
the transportation, travel services and tourism industries in the
third quarter. However, business in the healthcare, Internet and
automotive segments continued to be buoyed by the speedy ramp-up of
recently signed contracts.
Offshore activities in the Philippines are down as business
shifted to the Ibero-LATAM-based nearshore activities, where the
current environment is more conducive to the wide-scale deployment
of the WFH model. In addition, Group’s activities in the
Philippines are being hampered by the travel restrictions still in
effect in the country’s large cities.
Business in Asia continued to improve in the third quarter, in
line with the sustained growth that re-emerged after the strictest
health measures were lifted in China during the first half.
Operations in Malaysia are pursuing their very strong growth, led
by the contribution of recently signed contracts in the social
media industry.
Business in the UK market continued to expand quickly in the
third quarter, driven by the ongoing deployment of Covid-19 support
services for the government and a solid commercial dynamic. In
addition, business in the construction, automotive and online
services industries is ramping up quickly, fulfilled in particular
by the Group’s offshore operations in South Africa.
Nine-month revenue for the Ibero-LATAM region came to €1,111
million, a year-on-year increase of +23.9% like-for-like. The
reported +13.0% increase primarily reflected the decline in the
Brazilian real, the Colombian peso, the Argentine peso and the
Mexican peso against the euro.
Third-quarter revenue growth stood at +34.9% like-for-like. The
faster momentum compared with the first half was impelled by the
ramp-up of new contracts, primarily in the digital economy, which
was supported by the very large percentage of employees still
working from home during the period.
The primary drivers of the quarterly performance were the
operations in Colombia, the nearshore activities in Mexico, and the
operations in Portugal and Spain. In terms of client industries,
there were solid gains in financial services, e-tailing and online
entertainment, as well as rapid growth in the automotive segment.
In all, around 40% of the new contracts won since the beginning of
the year across the region were signed with digital economy
clients.
- Continental Europe & MEA (CEMEA)
Revenue growth in the CEMEA region considerably outpaced the
market, increasing by +13.2% like-for-like to €883 million in the
first nine months of 2020, or by +12.3% as reported.
Like-for-like revenue growth in the third quarter rose to
+23.0%, confirming the return to fast growth that began in June.
This significant acceleration compared with the first half
reflected the improvement in performance after strict lockdown
measures were lifted, as well as the sustained, satisfactory
contract wins from multinational clients, particularly in the
online entertainment, e-tailing and consumer electronics
industries. In particular, this was the case in Greece
(multilingual hubs), the German-speaking markets (offshore
activities in particular) and Eastern European countries, as well
as in Turkey and Egypt, where the Group recently opened new
facilities.
Business in the Netherlands remained strong over the third
quarter, with in particular the ongoing deployment of Covid-19
support services for the government.
In the first nine months of 2020, operations in the India &
Middle East region generated €330 million in revenue, a
year-on-year decline of -8.9% like-for-like and of -13.5% as
reported, due to the decline in the Indian rupee against the euro.
Third-quarter revenue growth was virtually stable like-for-like
(+0.6%).
The upturn in business throughout the third quarter was led by
the easing of India’s drastic lockdown measures and the return to
sustained growth in offshore activities, particularly in the
e-tailing and online entertainment segments.
The program to terminate low-margin contracts in domestic
activities in India, which was initiated in late 2019 and stepped
up in first-half 2020 during the pandemic, is expected to be
completed by year-end.
Revenue from Specialized Services stood at €479 million in the
first nine months of 2020, a decline of -8.0% like-for-like and of
-8.6% as reported, due to the increase in the US dollar against the
euro. In the third quarter, business contracted by -4.6%
like-for-like.
TLScontact’s business continued its steep decline in the third
quarter as travel restrictions and border closures remained in
effect.
LanguageLine Solutions maintained the strong growth that resumed
in June, thanks to a portfolio of services delivered by 11,000
interpreters working from home who were able to meet the surging
demand. These operations are now enjoying robust growth.
Revenue from the debt collection operations in North America
rose year-on-year during the third quarter, lifted by the
satisfactory pace of contract wins that re-emerged late in the
first half.
Outlook
Based on the very good performance reported in the third
quarter, Teleperformance has raised its full-year 2020 revenue
growth objective and is now targeting around +8.0% like-for-like
growth, versus the previously announced “around +6.0%.”
In addition, the Group has confirmed its target for an EBITA
margin before non-recurring items of at least 12.5%.
Teleperformance has also reaffirmed its commitment to pursuing
sustainable, profitable growth in its businesses over the medium
term. The Group is maintaining the following objectives:
- Revenue of around €7 billion in 2022, including targeted
acquisitions in high-value services; - Average like-for-like growth
of at least +6% per year over the 2020-2022 period; - An EBITA
margin of around 14.5% in 2022.
Disclaimer
All forward-looking statements are based on Teleperformance
management’s present expectations of future events and are subject
to a number of factors and uncertainties that could cause actual
results to differ materially from those described in the
forward-looking statements. For a detailed description of these
factors and uncertainties, please refer to the “Risk Factors”
section of our Registration Document, available at
www.teleperformance.com. Teleperformance undertakes no obligation
to publicly update or revise any of these forward-looking
statements.
Conference call with analysts and investors
Tuesday, November 3, 2020 at 6:15 PM CET
A replay of the conference call will be available for subsequent
listening on Teleperformance’s website, along with the relevant
documentation, in the Investor Relations section under Quarterly
Information (www.teleperformance.com), and by clicking on the
following link:
http://www.teleperformanceinvestorrelations.com/en-us/press-releases-and-documentation/quarterly-information
Investor calendar (indicative)
Full-year 2020 results: Thursday, February 25, 2021
First-quarter 2021 revenue: Thursday, April 22, 2021
About Teleperformance Group
Teleperformance (TEP – ISIN: FR0000051807 – Reuters: TEPRF.PA
- Bloomberg: TEP FP), a leading global group in digitally
integrated business services, serves as a strategic partner to
the world’s largest companies in many industries. It offers a One
Office support services model combining three wide, high-value
solution families: customer experience management, back-office
services and business process knowledge services. These end-to-end
digital solutions guarantee successful customer interaction and
optimized business processes, anchored in a unique, comprehensive
high tech, high touch approach. The Group's 331,000 employees,
based in 80 countries, support billions of connections every year
in over 265 languages and 170 markets, in a shared commitment to
excellence as part of the “Simpler, Faster, Safer” process. This
mission is supported by the use of reliable, flexible, intelligent
technological solutions and compliance with the industry’s highest
security and quality standards, based on Corporate Social
Responsibility excellence. In 2019, Teleperformance reported
consolidated revenue of €5,355 million (US$ 6 billion, based on €1
= $1.12) and net profit of €400 million.
Teleperformance shares are traded on the Euronext Paris market,
Compartment A, and are eligible for the deferred settlement
service. They are included in the following indices: CAC 40, CAC
Support Services, STOXX 600, S&P Europe 350 and MSCI Global
Standard. In the area of corporate social responsibility,
Teleperformance shares have been included in the Euronext Vigeo
Eurozone 120 index since 2015, the FTSE4Good index since 2018 and
also the Ethibel Sustainability Excellence Europe index (confirmed
in 2019).
For more information: www.teleperformance.com Follow us on
Twitter: @teleperformance
Appendices
Appendix 1 – Quarterly and nine-month revenue by
activity
Nine months 2020
Nine months 2019
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
3,609
3,392
+9.9%
+6.4%
English-speaking & Asia-Pacific
(EWAP)
1,285
1,241
+3.2%
+3.6%
Ibero-LATAM
1,111
983
+23.9%
+13.0%
Continental Europe & MEA (CEMEA)
883
786
+13.2%
+12.3%
India & Middle East**
330
382
-8.9%
-13.5%
SPECIALIZED SERVICES
479
524
-8.0%
-8.6%
TOTAL
4,088
3,916
+7.4%
+4.4%
Q3 2020
Q3 2019
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
1,265
1,171
+14.9%
+8.0%
English-speaking & Asia-Pacific
(EWAP)
429
440
+0.0%
-2.5%
Ibero-LATAM
400
338
+34.9%
+18.2%
Continental Europe & MEA (CEMEA)
321
266
+23.0%
+20.6%
India & Middle East**
115
127
+0.6%
-9.3%
SPECIALIZED SERVICES
163
181
-4.6%
-9.6%
TOTAL
1,428
1,352
+12.3%
+5.6%
Q2 2020
Q2 2019
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
1,165
1,115
+7.9%
+4.5%
English-speaking & Asia-Pacific
(EWAP)
425
401
+4.9%
+6.0%
Ibero-LATAM
355
329
+18.8%
+7.9%
Continental Europe & MEA (CEMEA)
288
257
+12.9%
+12.1%
India & Middle East**
97
129
-19.8%
-24.3%
SPECIALIZED SERVICES
142
178
-21.0%
-20.2%
TOTAL
1,307
1,293
+3.8%
+1.1%
Q1 2020
Q1 2019
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
1,179
1,105
+6.8%
+6.6%
English-speaking & Asia-Pacific
(EWAP)
431
400
+4.8%
+7.8%
Ibero-LATAM
356
316
+18.1%
+12.5%
Continental Europe & MEA (CEMEA)
274
263
+3.9%
+4.2%
India & Middle East**
118
126
-7.0%
-6.6%
SPECIALIZED SERVICES
173
166
+2.2%
+4.9%
TOTAL
1,352
1,271
+6.2%
+6.4%
* Digital Integrated Business Services ** Ex-Intelenet
operations in the Middle East
Appendix 2
Glossary - Alternative Performance Measures
Change in like-for-like revenue: Change in revenue at constant
exchange rates and scope of consolidation = [current year revenue -
last year revenue at current year rates - revenue from acquisitions
at current year rates] / last year revenue at current year
rates.
EBITDA before non‑recurring items or current EBITDA (Earnings
before Interest, Taxes, Depreciation and Amortization): Operating
profit before depreciation & amortization, amortization of
intangible assets acquired as part of a business combination,
goodwill impairment charges and non-recurring items.
EBITA before non‑recurring items or current EBITA (Earnings
before Interest, Taxes and Amortization): Operating profit before
amortization of intangible assets acquired as part of a business
combination, goodwill impairment charges and non-recurring
items.
Non‑recurring items: Principally comprises restructuring costs,
incentive share award plan expense, costs of closure of subsidiary
companies, transaction costs for the acquisition of companies, and
all other expenses that are unusual by reason of their nature or
amount.
Net free cash flow: Cash flow generated by the business -
acquisitions of intangible assets and property, plant and equipment
net of disposals - financial income/expenses.
Net debt: Current and non-current financial liabilities - cash
and cash equivalents
Diluted earnings per share (net profit attributable to
shareholders divided by the number of diluted shares and adjusted):
Diluted earnings per share is determined by adjusting the net
profit attributable to ordinary shareholders and the weighted
average number of ordinary shares outstanding by the effects of all
potentially diluting ordinary shares. These include convertible
bonds, stock options and incentive share awards granted to
employees when the required performance conditions have been met at
the end of the financial year.
Details on the Group's liquidity at June 30, 2020
Given the exceptional situation caused by Covid-19, the Group
communicated in its half-yearly publication dated July 29, 2020
that its available liquidity amounted to "more than €1.5 billion."
This amount represents the sum of cash and cash equivalents
presented in the consolidated balance sheet at June 30, 2020, i.e.
€675 million, and available and unused credit lines at that same
date, i.e. €1,205 million.
---------------------------------------------------------------------------------------------------------------------------------------------
The reader is invited to verify authenticity of press releases
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www.certidox.com
NB: - The alternative performance
measures (APM) are defined in Appendix 2
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201103005480/en/
FINANCIAL ANALYSTS AND INVESTORS Investor relations and
financial communication department TELEPERFORMANCE Tel: +33 1 53 83
59 15 investor@teleperformance.com
PRESS RELATIONS Europe Laurent Poinsot – Karine
Allouis IMAGE7 Tel: +33 1 53 70 74 70 teleperformance@image7.fr
PRESS RELATIONS Americas and Asia-Pacific Mark
Pfeiffer TELEPERFORMANCE Tel: + 1 801-257-5811
mark.pfeiffer@teleperformance.com
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