Earnings Release • Nov 12, 2014
Earnings Release
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PARIS, NOVEMBER 12, 2014 – Teleperformance, the global leader in outsourced multichannel customer experience management, today released its quarterly and nine-month revenue for the period ended September 30, 2014.
Paulo César Salles Vasques, Chief Executive Officer of Teleperformance Group, said: "Teleperformance continued to enjoy strong business momentum over the first nine months of 2014. The English-speaking market & Asia-Pacific region reported further robust growth in the third quarter, shaped by new businesses in a broad range of sectors. In Ibero-LATAM, Brazil's performance over the quarter was lifted by the start-up of major contracts in the north of the country. Business growth in the Continental Europe & MEA region continued to be driven by the ramp-up of the UKVI contract signed with the British government in outsourced visa processing solutions.
The acquisition in August 2014 of Aegis USA, a leading provider of customer services in the United States, the Philippines and Costa Rica, allowed us to strengthen our worldwide leadership. The integration of Aegis' teams, clients and systems is progressing smoothly and should be completed during the first quarter of 2015.
For full-year 2014, we have raised our annual like-for-like revenue growth target to above + 9% and are specifically targeting an annual EBITA margin before non-recurring items of around 9.7%, up from 9.3% one year earlier. "
Daniel Julien, Executive Chairman of Teleperformance Group, added: "The exceptional momentum enjoyed in 2014 and our positive outlook for 2015 should be credited to the smoothly executed change in the Group's governance structure, which is enabling us to gradually revitalize our operational management teams while also stepping up strategic acquisitions. The objective outcome of all this is faster value creation."
| Change | |||||
|---|---|---|---|---|---|
| € millions | 2014 | 2013 | Like | ||
| Reported | for-like | ||||
| THIRD QUARTER | 708.1 | 587.3 | + 20.6% | + 12.8% | |
| NINE MONTHS (TO SEPTEMBER 30) | 1,953.1 | 1,783.5 | + 9.5% | + 11.2% |
Revenue came in at €708.1 million for the third quarter of 2014, up a sharp + 12.8% on the prior-year period at constant exchange rates and scope of consolidation (like-for-like) and up + 20.6% as reported. Revenue growth includes a + €50.5 million impact resulting from the consolidation of Aegis USA as from August 7, 2014 and of City Park Technologies as from July 1, 2014.
Revenue came in at €1,953.1 million for the first nine months of 2014, surging + 11.2% year-on-year on a likefor-like basis. Reported revenue growth was + 9.5%, as the decline in certain currencies against the euro (chiefly the Brazilian real, US dollar, and the Argentine and Colombian pesos) had a negative revenue impact of €72.4 million.
| 2014 | Change | ||||||
|---|---|---|---|---|---|---|---|
| € millions | 2013 | Reported | Like-for-like | ||||
| NINE MONTHS (TO SEPTEMBER 30) | |||||||
| English-speaking market & Asia-Pacific | 814.1 | 688.1 | + 18.3% | + 14.1% | |||
| Ibero-LATAM | 562.3 | 575.5 | (2.3)% | + 5.7% | |||
| Continental Europe & MEA | 576.7 | 519.9 | + 10.9% | + 13.1% | |||
| TOTAL | 1,953.1 | 1,783.5 | + 9.5% | + 11.2% | |||
| THIRD QUARTER | |||||||
| English-speaking market & Asia-Pacific | 319.5 | 233.3 | + 37.0% | + 14.8% | |||
| Ibero-LATAM | 194.8 | 181.0 | + 7.6% | + 9.3% | |||
| Continental Europe & MEA | 193.8 | 173.0 | + 12.0% | + 13.7% | |||
| TOTAL | 708.1 | 587.3 | + 20.6% | + 12.8% | |||
| SECOND QUARTER | |||||||
| English-speaking market & Asia-Pacific | 249.5 | 224.2 | + 11.3% | + 17.6% | |||
| Ibero-LATAM | 187.9 | 202.5 | (7.2)% | + 2.8% | |||
| Continental Europe & MEA | 197.7 | 177.4 | + 11.4% | + 13.5% | |||
| TOTAL | 635.1 | 604.1 | + 5.1% | + 11.6% | |||
| FIRST QUARTER | |||||||
| English-speaking market & Asia-Pacific | 245.1 | 230.6 | + 6.3% | + 9.9% | |||
| Ibero-LATAM | 179.5 | 191.9 | (6.4)% | + 5.1% | |||
| Continental Europe & MEA | 185.3 | 169.5 | + 9.3% | + 12.0% | |||
| TOTAL | 609.9 | 592.0 | + 3.0% | + 9.1% |
The geographic mix remained robust, with 71% of revenue generated in major markets delivering profitability and growth, compared to 65% in 2010. In the nine months to September 30, 2014, the English speaking market & Asia-Pacific region represented 42% of consolidated revenue, the Ibero-LATAM region 29% and Continental Europe & MEA 29%.
Like-for-like growth in the English-speaking market & Asia-Pacific region was + 14.8% in the third quarter and + 14.1% over the first nine months of the year.
The regional market continues to enjoy strong momentum, particularly in the United States, where the Group saw solid growth in business with its existing clients in the Internet and consumer electronics sectors, and the ramp-up of numerous contracts with new customers in a variety of industries including financial services, health, online travel agencies and specialty retail.
UK operations posted sustained growth, particularly in the public sector, retail and energy sectors.
The pace of growth was brisk in Asia-Pacific, especially China, where the Group is partnering the rapid development of big international companies.
Third-quarter revenue for the region includes the operations of both Aegis USA – a leading provider of customer services in the United States, the Philippines and Costa Rica – as from August 7, 2014, and City Park Technologies in the United Kingdom – as from July 1, 2014. Aegis USA and City Park Technologies represent annual pro forma revenue of \$400 million and £17 million, respectively.
Operations in the Ibero-LATAM region were up + 9.3% like-for-like in the third quarter, accelerating sharply compared to the first half of the year.
Despite a sluggish economic environment, the Group's operations in Brazil were lifted in the third quarter by the start-up of new contracts signed with existing customers based at sites recently opened in the north of the country.
In Mexico, El Salvador and Dominican Republic, nearshore activities serving the US market advanced at a good pace over the quarter.
Like-for-like growth came in at + 5.7% for the first nine months of the year, led by Mexico and Portugal.
The Continental Europe & MEA region delivered like-for-like revenue growth of + 13.7% in the third quarter and + 13.1 % over the first nine months of the year.
Regional growth was boosted by the fast-paced development of business at the subsidiary TLScontact, which specializes in "Face-to-Face" services. Since the end of first-quarter 2014, its performance has benefited from the start-up of operations under a major contract signed with the UK Government to manage visa applications from Europe, the Mediterranean and Africa.
Moreover, the Group continued to enjoy good sales momentum with global accounts, especially in the Netherlands, Russia and Southern Europe (Greece and Turkey).
Operations in metropolitan France, where conditions remained difficult, so far account for less than 4% of consolidated revenue.
Teleperformance has raised its annual business growth target on the strength of its performance over the first nine months of 2014 and now expects like-for-like revenue growth of at least + 9%.The Group is also targeting an annual EBITA margin before non-recurring items of around 9.7% (up from 9.3% in 2013).
Current ongoing efforts to expand the business – particularly in the US and Asia – as well as the completion of the Aegis USA integration expected early next year, should help Teleperformance deliver above-market revenue growth once again in 2015 as well as a further improvement in its EBITA margin before non-recurring items.
Wednesday, November 12, 2014 at 6:15 p.m. (CET) Presentation materials will also be available at www.teleperformance.com.
Full-year 2014 results: February 26, 2015
INVESTOR AND PRESS RELATIONS QUY NGUYEN-NGOC Tel: +33 1 53 83 59 87 [email protected]
Teleperformance, the global leader in outsourced multimedia customer experience management, serves companies around the world with customer care, technical support, customer acquisition and debt collection programs. In 2013, it reported consolidated revenue of €2.433 billion (\$3.236 billion, based on €1 = \$1.33).
The Group operates some 135,000 computerized workstations, with over 175,000 employees across some 270 contact centers in 62 countries that serve more than 150 markets. It manages programs in 63 languages and dialects on behalf of major international companies operating in a wide variety of industries.
Teleperformance shares are traded on Euronext Paris, Compartment A, and are eligible for the deferred settlement service. They are included in the following indices: SBF 120, STOXX 600 and France CAC Mid & Small. Symbol: RCF - ISIN: FR0000051807 – Reuters: ROCH.PA – Bloomberg: RCF FP
For more information: www.teleperformance.com Follow us: Twitter @teleperformance
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