Further strong revenue growth; full-year 2022 guidance
raised
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Analyse de la croissance du chiffre
d’affaires sur les 9 premiers mois 2022 (Graphique:
Teleperformance)
Teleperformance (Paris:TEP), the global leader in outsourced
customer and citizen experience management and related digital
services, today released its quarterly and nine-month revenue
figures for the period ended September 30, 2022.
- Third-quarter 2022: €2,056 million, up +17.2% as
reported
- up +7.0% like-for-like*
- up +13.8% like-for-like excluding impact of lower
revenue from Covid support contracts
- Nine months 2022: €6,002 million, up +15.7% as reported
- up +6.0% like-for-like*
- up +13.2% like-for-like excluding impact of lower
revenue from Covid support contracts
Solid, responsible growth
- The Group's growth was based on: - a diversified client
portfolio - optimized outsourcing solutions thanks to the digital
transformation - the global expertise developed in each client
sector - the strong momentum in the travel, healthcare (in the
United States) and financial services sectors, as well as in the
digital economy
- The high value-added Specialized Services activities have
recently been strengthened thanks to the acquisition of PSG
Global Solutions (“PSG”) in the recruitment process outsourcing
market. Its offering is based on a digital platform that reduces
recruitment lead time and costs
- The Group is continuing to deploy a flexible work
organization, with around 50% of the workforce working from
home
- In October 2022, for the second year running, Teleperformance
was named one of the World’s 25 Best Workplaces™ across all
industries by Fortune magazine in partnership with Great Place
to Work®
Full-year 2022 targets raised
- Despite an uncertain economic environment, the Group will
continue to grow in the fourth quarter, thanks to the ramp-up
of contracts signed over the course of the year
- Like-for-like revenue growth excluding Covid support
contracts** should be more than +12%, versus the 2022 target of
more than +10% initially communicated
- The EBITDA margin before non-recurring items should be more
than 21%
- The EBITA margin before non-recurring items should stand at
around 15.5%, up +40 basis points year on year, and up +10
basis points compared with the 2022 target of a +30 basis point
increase initially communicated
* At constant scope of consolidation and exchange rates; **
Excluding the impact of lower revenue from Covid support contracts
("Covid contracts")
Commenting on this performance, Teleperformance Chairman and
Chief Executive Officer Daniel Julien said: "In third-quarter
2022, Teleperformance generated revenue growth of +17.2% reported,
of which +7.0% like-for-like and +13.8% excluding the impact of
Covid support contracts. In the first nine months of the year,
revenue amounted to €6 billion. The current momentum supports our
forecast of revenue above €8 billion for the full year, with
like-for-like growth of more than +12%, excluding the impact of
Covid support contracts.
This growth is coupled with an upward trend in EBITA margin,
which should reach 15.5%, up +40 basis points versus 2021 and +10
basis points versus our initial targets.
Despite a tough environment, the growth outlook is solid, thanks
to our three-fold expertise in “lines of business, client
verticals, geographies” and our reinforced investments in digital
solutions.
The acquisition of PSG, specialized in recruitment process
outsourcing (RPO), further enhances our offering."
Nine-month and third-quarter 2022 Group revenue
€ millions
2022
2021
% change
Like-for-like excluding “Covid
contracts”*
Like-for-like
Reported
Average exchange rate (9 months)
€1 = US$1.06
€1 = US$1.20
Nine months
6,002
5,186
+13.2%
+6.0%
+15.7%
Third quarter
2,056
1,755
+13.8%
+7.0%
+17.2%
* Excluding the impact of lower revenue from Covid support
contracts (“Covid contracts”)
Consolidated revenue
Revenue for the third quarter of 2022 amounted to €2,056
million, up +17.2%, including a favorable currency effect
linked mainly to the rise in the US dollar against the euro and a
scope effect reflecting the consolidation of Senture in the Group's
financial statements. Growth was +7.0% on a like-for-like basis
compared to third-quarter 2021, a satisfactory performance
given the absence of any material contribution from Covid support
contracts during the quarter. Adjusted for this non-recurring
impact, third-quarter like-for-like growth was +13.8%, building
on the increased momentum observed in the second quarter across
both of the Group's activities.
Revenue amounted to €6,002 million for the first nine months
of 2022, a year-on-year increase of +6.0% at constant exchange
rates and scope of consolidation (like-for-like) and of +15.7%
as reported. Reported revenue was also lifted by the +€286 million
positive currency effect, stemming mainly from the rise in the US
dollar against the euro. Changes in the scope of consolidation had
a +€203 million positive impact, reflecting the consolidation of
Health Advocate from July 1, 2021 and of Senture from January 1,
2022.
Like-for-like growth in the first nine months of 2022 was
particularly strong given the negative impact of lower revenue
from Covid support contracts (down -€394 million compared with the
first nine months of 2021). Adjusted for this expected
non-recurring impact, like-for-like growth stood at +13.2% for the
period.
This strong momentum is based in particular on the Group's
robust and diversified client portfolio. Thanks to our global
presence and our attractive offering of integrated solutions, "from
the field to the board room", we are well positioned to outperform
the structural growth of the market.
The Specialized Services activities also enjoyed sustained
growth, led by the resounding recovery of TLScontact’s visa
application management business and the continued steady
development of LanguageLine Solutions' online interpreting
business.
Revenue by activity
Nine months 2022
Nine months 2021
Variation
€ millions
Like-for-like
Like-for-like excluding “Covid
contracts”**
Reported
CORE SERVICES & D.I.B.S.*
5,160
4,604
+4.2%
+12.4%
+12.1%
English-speaking & Asia-Pacific
(EWAP)
1,787
1,510
+0.2%
+10.7%
+18.3%
Ibero-LATAM
1,687
1,370
+16.9%
+16.9%
+23.1%
Continental Europe & MEA (CEMEA)
1,275
1,404
-8.2%
+7.7%
-9.1%
India
411
320
+20.3%
+20.3%
+28.3%
SPECIALIZED SERVICES
842
582
+19.1%
+19.1%
+44.7%
TOTAL
6,002
5,186
+6.0%
+13.2%
+15.7%
Q3 2022
Q3 2021
Variation
€ millions
Like-for-like
Like-for-like excluding “Covid
contracts”**
Reported
CORE SERVICES & D.I.B.S.*
1,749
1,529
+5.1%
+13.0%
+14.4%
English-speaking & Asia-Pacific
(EWAP)
612
518
-1.5%
+8.4%
+18.0%
Ibero-LATAM
588
475
+16.8%
+16.8%
+24.0%
Continental Europe & MEA (CEMEA)
401
427
-5.3%
+11.5%
-6.1%
India
148
109
+24.7%
+24.7%
+35.0%
SPECIALIZED SERVICES
307
226
+18.8%
+18.8%
+36.3%
TOTAL
2,056
1,755
+7.0%
+13.8%
+17.2%
* Digital Integrated Business Services ** Excluding the impact
of lower revenue from Covid support contracts ("Covid
contracts")
- Core Services & Digital Integrated
Business Services (D.I.B.S.)
In the third quarter, Core Services & D.I.B.S. revenue
amounted to €1,749 million, up +5.1% like-for-like from the
prior-year period. Excluding the impact of Covid support contracts,
like-for-like growth was +13.0%. The acceleration in business
growth observed in the second quarter of the year continued apace
in the third quarter.
Revenue amounted to €5,160 million in the first nine months of
2022, a year-on-year increase of +4.2% like-for-like. Reported
growth came to +12.1%, with the difference versus like-for-like
growth primarily attributable to the rise against the euro in the
US dollar and most other currencies including the Brazilian real,
the Indian rupee, the Mexican peso and the Colombian peso. In
addition, reported growth includes the contribution of Senture,
which has been consolidated in the Group's financial statements
from January 1, 2022.
Excluding the impact of Covid support contracts, the Core
Services & D.I.B.S. activity delivered +12.4% growth on a
like-for-like basis in the first nine months. This strong momentum
is based in particular on the Group’s robust and diversified client
portfolio.
- English-speaking & Asia-Pacific (EWAP)
In the third quarter, revenue for the region was €612 million,
slightly down (-1.5%) on a like-for-like basis, affected by the
sharp decline in the revenue contribution of Covid support
contracts in the United Kingdom. Excluding the impact of Covid
support contracts, like-for-like growth was +8.4%.
Revenue was €1,787 million for the first nine months of 2022,
stable compared to the prior year with a like-for-like increase of
+0.2%. The reported increase of +18.3% was primarily attributable
to favorable currency effects – corresponding to the rise against
the euro in the US dollar and, to a lesser extent, in the Indian
rupee, the Philippine peso and the pound sterling– and the positive
impact of consolidating Senture from January 1, 2022.
Revenue remained stable throughout the nine-month period due
mainly to the sharp decline in the revenue contribution of Covid
support contracts in the United Kingdom, which was expected.
Excluding Covid support contracts, like-for-like growth for the
EWAP region was +10.7%.
In the North American market, revenue in the social media,
online entertainment, travel and financial services sectors
continued to grow at a brisk pace.
Offshore activities in the Philippines have been growing at a
very rapid pace since the beginning of the year. They are
attractive for effectively addressing the temporary recruitment
difficulties encountered in the US domestic labor market.
In the United Kingdom, activities excluding the impact of Covid
support contracts accelerated significantly in the third quarter in
the banking and insurance sectors and with government agencies.
In the third quarter, revenue came to €588 million, up +16.8% on
a like-for-like basis.
Nine-month revenue for the Ibero-LATAM region came to €1,687
million, a year-on-year increase of +16.9% like-for-like. The
reported increase of +23.1% mainly reflected the rise in the US
dollar, Brazilian real, Mexican peso and Colombian peso against the
euro.
This once again very satisfactory performance is largely
attributable to the Group's assertive operations in the social
media, online entertainment, healthcare, financial services and
travel sectors.
Growth remained strong in most countries in the region. Business
growth was particularly robust in Argentina, Peru, the Dominican
Republic and Mexico. Multilingual hubs in Spain and Portugal are
enjoying further rapid expansion.
- Continental Europe & MEA (CEMEA)
In the third quarter, revenue in the CEMEA region came to €401
million, down -5.3% on a like-for-like basis, due to the sharp
decline in the contribution from Covid support contracts. Excluding
the impact of Covid support contracts, like-for-like growth was
+11.5%.
Revenue amounted to €1,275 million in the first nine months of
2022, a year-on-year decline of -8.2% like-for-like and of -9.1% as
reported, with the difference corresponding to negative currency
effects due mainly to the fall of the Turkish lira against the
euro. The like-for-like decline in revenue is linked to the sharp
decrease in the contribution from Covid support contracts in the
Netherlands, France and Germany. Excluding the impact of Covid
support contracts, business growth reached +7.7% on a like-for-like
basis, accelerating steadily throughout the first nine months of
the year.
The Group reaped the rewards of many new contract start-ups and
buoyant business with multinational clients, particularly in the
travel, automotive, financial services and online entertainment
sectors.
In the third quarter, revenue amounted to €148 million, up
+24.7% like-for-like, a sharp acceleration compared with the first
half of the year.
In the first nine months of 2022, operations in India generated
€411 million in revenue, up +20.3% like-for-like from the
prior-year period and by a stronger +28.3% as reported, due to the
positive currency effect caused by the rise in the Indian rupee
against the euro.
Offshore activities, which are the main source of regional
revenue and include high value-added solutions for all
English-speaking markets, were very robust. Offshore solutions are
particularly attractive since they effectively address temporary
recruitment difficulties encountered in the domestic labor
market.
In the third quarter, revenue was €307 million, up +18.8% on a
like-for-like basis.
Revenue from Specialized Services stood at €842 million in the
first nine months of 2022, a year-on-year increase of +19.1%
like-for-like and of +44.7% as reported. The difference between
like-for-like and reported growth stemmed from a favorable currency
effect linked to the increase in value of the US dollar against the
euro and a positive scope effect in the first half due to the
consolidation of Health Advocate in the Group's financial
statements since July 1, 2021.
The recovery in TLScontact volumes continued in the third
quarter. However, business has still not reached its full potential
due to the lockdowns in China.
The growth of LanguageLine Solutions, the main contributor to
Specialized Services revenue, accelerated in the third quarter. The
healthcare sector, which accounts for more than half of this
business' revenue, notably continued to deliver rapid growth.
Outlook
Barring unforeseen events, Teleperformance’s businesses should
continue to grow actively in the fourth quarter, supported by the
ramp-up of contracts signed in 2022. Based on the growth from
upbeat operations in the first nine months, Teleperformance has
raised its full-year 2022 guidance to:
- like-for-like revenue growth, excluding the
impact of Covid support contracts, of more than +12%, compared with
an initial growth objective of more than +10%, which should also
enable the Group to exceed the initial target of like-for-like
growth of +5%; - an EBITDA margin before non-recurring items of
more than 21% - an EBITA margin before non-recurring items of
around 15.5% respectively, up +40 basis points versus 2021, and up
+10 basis points versus the initial 2022 target of a +30 basis
point increase.
---------------------------------
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 the Universal Registration Document, available at
www.teleperformance.com. Teleperformance undertakes no obligation
to publicly update or revise any of these forward-looking
statements.
Webcast/Conference call with analysts and investors
A conference call and webcast will be held today at 6:15 PM
CEST. The webcast will be available live or for delayed viewing at:
https://channel.royalcast.com/landingpage/teleperformance/20221103_1/
Indicative investor calendar
Full-year 2022 results: February 16, 2023 First-quarter 2023
revenue: April 25, 2023
About Teleperformance Group
Teleperformance (TEP – ISIN: FR0000051807 – Reuters: TEPRF.PA
- Bloomberg: TEP FP), the global leader in outsourced customer and
citizen experience management and related digital 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, MSCI Global Standard and Euronext Tech
Leaders. In the area of corporate social responsibility,
Teleperformance shares are included in the CAC 40 ESG since
September 2022, the Euronext Vigeo Euro 120 index since 2015, the
EURO STOXX 50 ESG index since 2020, the MSCI Europe ESG Leaders
index since 2019, the FTSE4Good index since 2018 and the S&P
Global 1200 ESG index since 2017.
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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FINANCIAL ANALYSTS AND INVESTORS Investor relations and
financial communication department TELEPERFORMANCE
investor@teleperformance.com
PRESS RELATIONS Europe IMAGE7
teleperformance@image7.frteleperformance@image7.fr
PRESS RELATIONS Americas and Asia-Pacific Mark
Pfeiffer TELEPERFORMANCE mark.pfeiffer@teleperformance.com
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