- Record growth in first-quarter 2021, with revenue up +35.9%
like-for-like*
- Growth driven by the Group's strong sales momentum in an
environment shaped by faster development of the digital
economy
- Additional positive impact from support services for government
vaccination campaigns
- Like-for-like full-year 2021 revenue growth target raised to at
least +12%
Regulatory News:
Teleperformance (Paris:TEP), a leading global group in digitally
integrated business services, today released its quarterly revenue
figures for the three months from January 1 to March 31, 2021.
First-quarter 2021 revenue
- First-quarter 2021: €1,712 million
- up +26.6% as reported
- up +35.9% like-for-like
Record like-for-like growth in first-quarter 2021
- Strong sales momentum supported by faster digitalization of the
client environment and the development of high-value solutions
- Growth in support services for government vaccination campaigns
in continental Europe and the United Kingdom
- Dynamic driven by the efforts of more than 250,000 employees
working from home and the rapid deployment of TP Cloud Campus, the
Group’s digitally integrated solution for managing the customer
experience remotely
Full-year 2021 revenue growth target raised
- Like-for-like* full-year revenue growth of at least +12% versus
a previously announced target of at least +9%
- Confirmation of the EBITA margin before non-recurring items
target of more than 14% in 2021, versus 12.8% in 2020
- Expected completion of the acquisition of Health Advocate
during the second quarter
* At constant exchange rates and scope of consolidation
Commenting on this performance, Teleperformance Chairman and
Chief Executive Officer Daniel Julien said: “Teleperformance
set a new growth record in first-quarter 2021, with revenue up by
almost 36% like-for-like. This excellent quarterly performance
confirms the positive trends observed in the second half of 2020
despite the uncertainties associated with the global health
crisis.
In the first three months of 2021, Teleperformance benefited in
particular from strong sales momentum, notably in continental
Europe and in the Ibero-LATAM region, in an environment shaped by
faster development of the digital economy. We also benefited during
the quarter from a favorable basis of comparison – given the onset
of the global health crisis in March 2020 – and from the ramp-up of
support services for governments, primarily in the Netherlands and
the United Kingdom. Our performance in the first quarter once again
underscores our relevant, strong business model, our agile
organization and our successful growth strategy built around the
digital transformation of our clients and the deployment of
high-value solutions.
With around 250,000 employees now working from home, our growth
is also responsible for creating numerous jobs around the world and
for driving progress in the development of ESG best practices.
Teleperformance was notably ranked by Equileap in March 2021 among
the Top 100 companies globally for gender equality in the
workplace.
Based on this very solid first-quarter performance, we are
raising our like-for-like revenue growth target for the full year
to at least +12% and confirming our objective of an EBITA margin
above 14%, up sharply on 2020.”
Consolidated revenue
€ millions
2021
2020
% change
Like-for-like
Reported
Average exchange rate
€1 = US$1.20
€1 = US$1.10
First quarter
1,712
1,352
+35.9%
+26.6%
Consolidated revenue came in at €1,712 million for the first
quarter of 2021, representing a year-on-year increase of +35.9% at
constant exchange rates and scope of consolidation (like-for-like)
and +26.6% as reported. The difference between reported and
like-for-like growth was due to an unfavorable currency effect
(-€93 million) stemming from the decline against the euro of the US
dollar, the main Latin American currencies and the Indian
rupee.
These sharp gains in revenue were primarily driven by a strong
sales momentum in the Core Services & D.I.B.S. business, in an
environment shaped by faster development of the digital economy.
First-quarter revenue also benefited from a ramp-up in the
deployment of Covid-19 support services for governments, which
accounted for more than 40% of the Group’s quarterly like-for-like
revenue growth. In addition, given the onset of the global health
crisis in March 2020, the basis of comparison was favorable towards
the end of the quarter.
Revenue by activity
Q1 2021
Q1 2020**
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
1,536
1,179
+39.7%
+30.3 %
English-speaking & Asia-Pacific
(EWAP)
508
431
+26.6%
+17.7%
Ibero-LATAM
442
356
+37.4%
+24.1%
Continental Europe & MEA (CEMEA)**
481
284
+72.8%
+69.5%
India
105
108
+6.7%
-2.5%
SPECIALIZED SERVICES
176
173
+10.1%
+1.4%
TOTAL
1,712
1,352
+35.9%
+26.6%
* Digital Integrated Business Services ** Regional data is
presented on a restated pro forma basis following the integration
into the CEMEA region on January 1, 2021 of former Intelenet
activities in the Middle East, which were previously included in
the India & Middle East region.
- Core Services & Digital Integrated
Business Services (D.I.B.S.)
Core Services & D.I.B.S. revenue amounted to €1,536 million
in first-quarter 2021, a year-on-year increase of +39.7%
like-for-like. Reported revenue growth came to +30.3%, with the
difference primarily reflecting the decline against the euro of the
US dollar and, to a lesser extent, the main Latin American
currencies and the Indian rupee.
First-quarter like-for-like revenue growth in the Core Services
& D.I.B.S business was driven by the strong sales momentum
recorded in the CEMEA and Ibero-LATAM regions, in an environment
shaped by faster development of the digital economy, particularly
in e-tailing and online entertainment. Accelerated deployment of
Covid-19 support services for governments, particularly in the
CEMEA and EWAP regions, also contributed to the sharp gains posted
during the quarter. In addition, all regions benefited from a
favorable basis of comparison created by the prior-year impact of
the global health crisis, which began in March 2020.
- English-speaking & Asia-Pacific (EWAP)
Regional revenue came to €508 million in first-quarter 2021, up
+26.6% like-for-like. The reported gain of +17.7% included an
unfavorable currency effect stemming notably from the US dollar’s
decline against the euro.
In the North American market, a solid pace of growth was
recorded in the e-tailing, online entertainment, automotive and
consumer electronics segments. Travel and tourism, on the other
hand, continued to be severely impacted by the global health
crisis.
In the United Kingdom, operations expanded very rapidly during
the quarter, benefiting not only from faster deployment of Covid-19
support services to the government but also from a strong sales
dynamic in several segments, including consumer electronics and
energy.
In Asia, revenue continued to increase at a very brisk pace.
Growth in China, the leading revenue contributor in the region, was
notably driven by the consumer electronics and e-tailing segments.
The Group’s multilingual hubs in Malaysia continued to post very
strong gains, thanks mainly to the contribution of contracts signed
recently in the social media segment.
First-quarter 2021 revenue for the Ibero-LATAM region amounted
to €442 million, a year-on-year increase of +37.4% like-for-like.
On a reported basis, growth came out at +24.1%, with the difference
primarily reflecting the decline against the euro of the US dollar,
the Brazilian real, the Colombian peso, the Argentinian peso and
the Mexican peso.
The region maintained a very strong pace of growth thanks to the
large-scale deployment of work-from-home solutions and the numerous
contracts signed with e-clients.
Sharp gains were recorded in Colombia and by the Group’s
nearshore operations in Mexico, Dominican Republic and El Salvador.
Portugal and Spain also reported solid revenue growth. The
e-tailing, online entertainment and consumer electronics segments
were particularly dynamic, and rapid progress was also made during
the quarter in the online food services, healthcare and consumer
goods segments.
- Continental Europe & MEA (CEMEA)
In the CEMEA region, revenue rose by +72.8% like-for-like to
€481 million in first-quarter 2021, and by +69.5% year-on-year as
reported.
The region’s sales performance with multinational clients
remained very dynamic, particularly in the online entertainment,
e-tailing and consumer electronics segments. This was notably the
case in Greece (multilingual hubs), for the German-speaking market
and in the Netherlands, Italy, Turkey and Egypt.
The acceleration in growth over the past three quarters also
reflects the rapid ramp-up of support services for government
vaccination campaigns in the Netherlands and, to a lesser extent,
in France and Germany.
In the first quarter of 2021, operations in India generated €105
million in revenue, up +6.7% from the prior-year period on a
like-for-like basis and down 2.5% as reported, due to the negative
currency effect caused by the decline in the Indian rupee against
the euro.
In offshore operations, which were given priority for the
deployment of work-from-home solutions and include high-value
solutions, satisfactory gains were recorded, particularly in the
e-tailing, consumer electronics and food services segments.
In first-quarter 2021, Specialized Services revenue amounted to
€176 million, up +10.1% from the prior-year period on a
like-for-like basis and up +1.4% as reported, due to the decline in
the US dollar against the euro.
Business remained sharply down at TLScontact during the quarter,
reflecting ongoing travel restrictions and border closures. Given
that these restrictions were implemented gradually from March 2020,
the basis of comparison will become less unfavorable starting in
the second quarter. An upturn in revenue is not expected to occur
until the second half of 2021, and its magnitude will depend on how
the health crisis evolves.
Primary contributor and growth driver LanguageLine Solutions
continued to advance at a brisk pace during first-quarter 2021. The
company was able to respond effectively to strong demand, thanks to
its offering based on 13,700 interpreters who work from home. It
also benefited from a favorable basis of comparison for the month
of March, because business slowed temporarily in March 2020 due to
the impact of Covid-19 on the healthcare segment.
The debt collection business in North America recorded solid
quarterly revenue growth, driven by a strong sales dynamic during
the health crisis.
Outlook
Based on the solid performance delivered in the first quarter,
Teleperformance has raised its full-year 2021 revenue growth
objective and is now targeting at least +12% like-for-like revenue
growth, versus the previously announced target of “at least
+9%”.
In addition, the Group confirms its objective of achieving an
EBITA margin before non-recurring items of at least 14% (versus
12.8% in 2020).
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
Monday, April 12, 2021 at 8:45 AM 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
Financial Information (www.teleperformance.com), and by clicking on
the following link:
https://www.teleperformanceinvestorrelations.com/en-us/press-releases-and-documentation/quarterly-financial-information
Investor calendar (indicative)
Annual General Meeting: April 22, 2021 First-half 2021 results:
July 28, 2021 Third-quarter 2021 revenue: November 3, 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 380,000+ employees,
based in 83 countries, support billions of connections every year
in over 265 languages and over 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 2020, Teleperformance reported
consolidated revenue of €5,732 million (US$6.5 billion, based on €1
= $1.14) and net profit of €324 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 are included in the Euronext Vigeo Eurozone
120 index, the FTSE4Good index and the Solactive Europe Corporate
Social Responsibility index (formerly Ethibel Sustainability
Excellence Europe index).
For more information: www.teleperformance.com Follow us on
Twitter: @teleperformance
Appendix
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.
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NB: The alternative performance
measures (APM) are defined in Appendix
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210411005039/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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