- Revenue up +14.6% as reported, with a robust +6.5%
like-for-like gain*, despite high prior-year comparatives, and
active, targeted external growth
- Like-for-like growth of +11.1%, adjusted for non-recurring
items**
- Full-year 2022 objectives confirmed
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Analysis of first-quarter 2022 revenue
growth (Graphic: Teleperformance)
Teleperformance (Paris:TEP), the global leader in outsourced
customer and citizen experience management and advanced related
services, has released its quarterly revenue figures for the three
months ended March 31, 2022.
First-quarter 2022 revenue
- Revenue: €1,962 million
- up +14.6% as reported
- up +6.5 % like-for-like
- up +11.1% like-for-like, excluding the impact of Covid support
contracts
Robust, responsible growth
- Strong sales momentum, led by the accelerating pace of
market digitalization, particularly in the social media and
financial services ecosystems, and by the upturn in the travel
industry
- Expected impact over the quarter of the year-on-year decline in
revenue from support services for government vaccination campaigns
(Covid support contracts)
- Active, targeted external growth with the impact of
acquisitions in the United States, of Health Advocate in June 2021
in the healthcare sector and of Senture in December 2021 in
government services
- US$6 million global partnership signed with UNICEF to
improve children’s education programs in India and the Philippines
and contribute to the agency’s global disaster relief fund,
including to Ukraine
Full-year 2022 objectives confirmed
- Like-for-like revenue growth above +10% (excluding the impact
of Covid support contracts)
- Like-for-like growth above +5%
- A 30 basis-point increase in EBITA margin before non-recurring
items
- Further targeted acquisitions capable of creating value and
strengthening the Group’s high value-added businesses
* At constant exchange rates and scope of consolidation **At
constant scope of consolidation and exchange rates, and excluding
the impact of the change in revenue from the Covid support
contracts
Commenting on this performance, Teleperformance Chairman and
Chief Executive Officer Daniel Julien said: “This first quarter
performance holds a great deal of promise for another year of
growth. Despite particularly high prior-year comparatives and an
economic environment disrupted by the crisis in Ukraine, we
delivered sustained like-for-like revenue growth of +6.5%, and of
+11.1% before the expected decline in revenue from the Covid
support contracts. Quarterly revenue was lifted by robust business
development, particularly in the Ibero-LATAM region and in India,
in a rapidly transforming, fast-growing market. The recent
strategic acquisitions of Health Advocate and Senture in the United
States also made a significant contribution to the Group’s
expansion during the quarter. Lastly, we recently curtailed our
commitments in Russia, where our exposure remains at less than 1%
of our revenue stream.
Based on this encouraging first quarter, and despite an
increasingly destabilized global context, we can confirm our
full-year guidance, with in particular a like-for-like increase in
revenue of more than +5%, and of more than +10% excluding the
impact of Covid support contracts. We also remain committed to
pursuing targeted acquisitions to strengthen our high value-added
businesses.
In an environment marked by further crises, with people thrown
into highly vulnerable circumstances, we were proud to recently
announce the signing of a partnership with UNICEF to support
children’s education and contribute to the agency's worldwide
disaster relief fund. The US$6 million partnership will help
improve education programs in India and the Philippines and provide
emergency disaster relief around the world. As part of the
partnership, we have already donated US$500,000 to UNICEF to
support its work in Ukraine. We have also donated an equivalent
amount to support the work of the Red Cross in Ukraine."
------------------------
Consolidated revenue
€ millions
2022
2021
% change
Like-for-like
Reported
Average exchange rate
€1 = US$1.12
€1 = US$1.20
First quarter
1,962
1,712
+6.5%
+14.6%
Consolidated revenue came in at €1,962 million for the first
quarter of 2022, representing a year-on-year increase of +6.5%
at constant exchange rates and scope of consolidation
(like-for-like) and +14.6% as reported. The favorable currency
effect, which added +€54 million to reported revenue, stemmed
primarily from the rise against the euro in the US dollar and, to a
lesser extent the pound sterling, the Brazilian real and the Indian
rupee. Changes in the scope of consolidation had an +€82 million
positive impact, reflecting the consolidation of Health Advocate
from July 1, 2021 and of Senture from January 1, 2022.
Like-for-like growth during the quarter was particularly
strong given the negative but expected impact of the change in
revenue from Covid support contracts (down -€83 million compared
with first-quarter 2021). Adjusted for this non-recurring
impact, like-for-like growth stood at +11.1% for the period.
The gain reflected the very robust sales momentum in the Core
Services & D.I.B.S. activities, driven by accelerating market
digitalization, particularly in the social media ecosystem, and a
recovery in certain sectors that had suffered during the health
crisis, such as hospitality and online travel. Specialized Services
revenue also rose sharply over the period, lifted by strong growth
in the TLScontact visa application management business, which
benefited from highly favorable prior-year comparatives and the
steady upturn in its business volumes.
Revenue by activity
Q1 2022
Q1 2021
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
1,711
1,536
+5.4%
+11.4%
English-speaking & Asia-Pacific
(EWAP)
599
508
+1.8%
+18.1%
Ibero-LATAM
525
442
+16.2%
+18.9%
Continental Europe & MEA (CEMEA)
459
481
-3.5%
-4.7%
India
128
105
+17.1%
+21.6%
SPECIALIZED SERVICES
251
176
+15.5%
+42.2%
TOTAL
1,962
1,712
+6.5%
+14.6%
* Digital Integrated Business Services
- Core Services & Digital Integrated
Business Services (D.I.B.S.) (D.I.B.S.)
Core Services & D.I.B.S. revenue amounted to €1,711 million
in first-quarter 2022, a year-on-year increase of +5.4%
like-for-like. Reported growth came to +11.4%, with the difference
primarily reflecting the rise against the euro in the US dollar
and, to a lesser extent sterling, the Brazilian real and the Indian
rupee. In addition, the consolidation of Senture from January 1,
2022 added +€50 million to reported revenue for the quarter.
Excluding the impact of the decline in revenue from Covid
support contracts, the Core Services & D.I.B.S. activities
delivered double-digit like-for-like growth over the period, driven
by the accelerating development of the digital economy,
particularly in the social media, online entertainment and online
food services segments. In addition, the financial services,
healthcare and automotive segments saw rapid expansion during the
period. Growth in the hospitality and tourism segments, which had
been hard hit by the health crisis, continued to gain momentum in
every operating region.
- English-speaking & Asia-Pacific (EWAP)
Regional revenue came to €599 million in first-quarter 2022, up
+1.8% like-for-like. and +18.1% as reported, i.e., including the
favorable currency effect stemming from the rise of the US dollar
and pound sterling against the euro and the positive impact of
consolidating Senture from January 1, 2022.
Business growth in the North American market confirmed the
renewed momentum that emerged in the second half of last year, both
in the domestic market and in the Philippines-based offshore
operations. The online entertainment, financial services and
healthcare segments expanded at a firm pace and the hospitality and
tourism segments continued to rebound.
Business in the United Kingdom ended the period down
year-on-year, due to the expected steep fall-off in revenue from
Covid support contracts. Among the other segments, insurance saw
sustained gains and healthcare ramped up quickly during the
quarter.
In Asia, business growth continued to be driven by the
contribution from recently signed contracts with global leaders in
the social media and online entertainment sectors, notably served
from the multilingual hubs in Malaysia and from Indonesia.
First-quarter 2022 revenue for the Ibero-LATAM region amounted
to €525 million, a year-on-year increase of +16.2% like-for-like.
Reported growth came to +18.9%, primarily due to the increase in
the Brazilian real and the Mexican peso against the euro.
Despite an unfavorable basis of comparison, business in the
region expanded at a fast pace, led by the contribution from a
large number of new contracts, particularly with e-clients.
During the quarter, growth was robust in Brazil, Argentina, Peru
and in the nearshore activities, particularly in the Dominican
Republic and Guatemala, as well as in Honduras and Nicaragua, where
the Group recently launched operations. The multilingual operations
in Portugal serving global market leaders in the digital economy
continued to expand steadily.
Across the region, business was very brisk in the social media,
online entertainment, hospitality and tourism, online food
services, automotive and healthcare segments.
- Continental Europe & MEA (CEMEA)
Revenue in the CEMEA region amounted to €459 million in the
first three months of 2022, a year-on-year decline of -3.5%
like-for-like and of -4.7% as reported, with the difference
reflecting the decline in the Turkish lira and Russian ruble
against the euro.
The slight contraction in business stemmed from the change in
contribution from Covid support contracts, particularly in the
Netherlands, France and Germany. As expected, revenue from these
contracts dropped off more markedly towards quarter-end, and will
continue to decline sharply in the second quarter.
Excluding the impact of Covid support contracts, business growth
was satisfactory in the region. Business with multinational
clients, particularly in the e-tailing and transportation segments,
was dynamic over the period, notably in the German-speaking
markets, Egypt, Romania and Poland. Growth in the hospitality and
tourism segments continued to pick up pace in the first
quarter.
In the first quarter of 2022, operations in India generated €128
million in revenue, up +17.1% from the prior-year period on a
like-for-like basis and by a stronger +21.6% as reported, due to
the positive currency effect caused by the upturn in the Indian
rupee against the euro.
Offshore activities, which are the main source of regional
revenue and include high value-added solutions, enjoyed rapid
growth over the period, buoyed by strong momentum in the e-tailing,
transportation and hospitality and tourism segments.
Domestic operations reported satisfactory growth while e-tailing
and online food services continued to ramp-up quickly.
Revenue from Specialized Services stood at €251 million in
first-quarter 2022, a year-on-year increase of +15.5% like-for-like
and of +42.2% as reported. The difference between like-for-like and
reported growth stemmed from afavorable currency effect caused by
the rise of the US dollar against the euro and a positive scope
effect (+€32 million) due to the consolidation of Health Advocate
from July 1, 2021.
TLScontact’s revenues climbed very sharply during the period,
thanks to a favorable basis of comparison with stronger volumes’
recovery since the second half of last year. In particular, demand
for UK visa applications returned to pre-crisis levels during the
quarter. Business in the Schengen area continued to trend upwards,
but remained below pre-crisis levels due to the dearth of inbound
travelers from China. While revenue is expected to continue
rebounding throughout the year, growth remains difficult to
estimate given the impact on international travel of the war in
Ukraine and the ever-evolving health situation.
LanguageLine Solutions, the activity’s main contributor and
business growth driver, advanced at a satisfactory pace over the
quarter, especially in the healthcare segment, though growth rates
were dampened by a high basis of comparison.
The debt collection business in North America reported
satisfactory quarterly revenue growth, particularly in the
nearshore activities, led by the robust sales momentum built up
since last year.
Outlook
Based on this encouraging first quarter, and despite an
increasingly destabilized global context, Teleperformance has
confirmed its full-year 2022 objectives, which include:
- Like-for-like revenue growth above +10%
(excluding the impact of Covid support contracts);
- Decrease in contribution from Covid support
contracts;
- Like-for-like revenue growth above +5%;
- A 30 basis-point increase in EBITA margin
before non-recurring items;
- Further targeted acquisitions capable of
creating value and strengthening the Group's high value-added
businesses.
-----------------
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 Universal 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, April 19, 2022 at 6:15p.m. 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.teleperformance.com/en-us/investors/publications-and-events/financial-publications/
Agenda indicatif de communication financière
First-half 2022 results: July 28, 2022
Third-quarter 2022 revenue: November 3, 2022
About Teleperformance Group
Teleperformance (TEP – ISIN: FR0000051807 – Reuters: TEPRF.PA
- Bloomberg: TEP FP), the global leader in outsourced customer and
citizen experience management and advanced related services,
serves as a strategic partner to the world’s largest companies in
many industries. It offers a One Office support services model
including end-to-end digital solutions, which guarantee successful
customer interaction and optimized business processes, anchored in
a unique, comprehensive high touch, high tech approach. Nearly
420,000 employees, based in 88 countries, support billions of
connections every year in over 265 languages and around 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
2021, Teleperformance reported consolidated revenue of €7,115
million (US$8.4 billion, based on €1 = $1.18) and net profit of
€557 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, 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 Euro 120 index since 2015, the EURO
STOXX 50 ESG index since 2020, the MSCI Europe ESG Leaders index
since 2019 and the FTSE4Good index since 2018.
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.
NB : The alternative performance
measures (APM) are defined in the Appendix
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FINANCIAL ANALYSTS AND INVESTORS Investor relations and
financial communication department TELEPERFORMANCE Tel: +33 1 53 83
59 15 investor@teleperformance.com
PRESS RELATIONS Europe Karine Allouis – Leslie
Jung-Isenwater – Laurent Poinsot 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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