Further strong revenue growth; full-year 2021 guidance
raised
Regulatory News:
Teleperformance (Paris:TEP), a leading global group in digitally
integrated business services, today released its quarterly and
nine-month revenue figures for the period ended September 30,
2021.
Continued strong revenue growth
- Nine months 2021: €5,186 million, up +31.0%
like-for-like*
- Third-quarter 2021: €1,755 million, up +20.8%
like-for-like*
- Strong sales momentum driven by accelerating market
digitalization, particularly in the e-tailing, logistics,
social media and online entertainment segments
- Enhanced value-added positioning with government
agencies
Solid, responsible growth
- Deployment of an efficient, responsible hybrid business model,
combining work-from-home and on-site solutions: at
end-September, 70% of Group employees were working from
home
- In October 2021, Teleperformance named one of the 25 World’s
Best Workplaces™ across all industries by Fortune magazine in
partnership with Great Place to Work® (Fortune World’s Best
Workplaces list)
- Teleperformance commits to the climate: new ambitious
carbon emission reduction targets, including a 49% reduction per
FTE by 2026 for Scopes 1 and 2, approved by the Science Based
Targets initiative (SBTi) in September 2021
Full-year 2021 revenue growth and margin targets
raised
- Continued robust business expansion expected in the fourth
quarter, from a high basis of comparison
- Like-for-like* full-year revenue growth of at least
+20%, versus the previous growth target of around +18%
- An EBITA margin before non-recurring items of around
15%, versus the previous target of more than 14.5%
* At constant exchange rates and scope of consolidation
Commenting on this performance, Teleperformance Chairman and
Chief Executive Officer Daniel Julien said: “Our businesses
achieved sustained growth of more than +30% for the first nine
months of the year. This performance far exceeds a simple return to
pre-crisis growth trends and reflects the strength of our agile,
sustainable business model that creates value for our clients,
employees and shareholders.
Our sales dynamic is particularly strong in
continental Europe and in the Ibero-LATAM region, where we support
many key digital economy players as well as large groups in their
digital transformation. The Group was also an active provider
of support services for government health campaigns. However, this
contribution was reduced as expected in the third quarter, given
the high level of vaccination coverage that has now been achieved.
Excluding these temporary support activities, the Group’s
like-for-like growth over the first nine months of the year
remained at a high level, close to +20%, advancing at a steady pace
every quarter excluding the 2020 comparatives shaped by the health
crisis.
Our growth is also responsible, with around 70% of our
employees now working from home, numerous jobs created around
the world and continuing progress in the development of ESG best
practices. Two recent strong commitments that are worth
highlighting: to our employees, with our ranking among the 25
World’s Best Workplaces™ across all industries by Fortune magazine
in partnership with Great Place to Work®; and to the climate, with
the approval of our ambitious greenhouse gas emission reduction
targets by 2026 by the Science Based Targets initiative (SBTi).
These achievements and the rapid development of our
operations around the world give us confidence in the future of
Teleperformance and the achievement of our annual financial
objectives in 2021. We are raising them today to at least +20%
for like-for-like growth and around 15% for operating margin,
representing all‑time records in annual performance for the
Group.”
NINE-MONTH AND THIRD-QUARTER 2021 GROUP REVENUE
€ millions
2021
2020
% change
Like-for-like
Reported
Average exchange rate (9 months)
€1 = US$1.20
€1 = US$1.13
9 months
5,186
4,088
+31.0%
+26.8%
Third quarter
1,755
1,428
+20.8%
+22.8%
CONSOLIDATED REVENUE
Revenue amounted to €5,186 million for the first nine months
of 2021, a year-on-year increase of +31.0% at constant exchange
rates and scope of consolidation (like-for-like) and of +26.8%
as reported. The unfavorable currency effect, which totaled a
negative €153 million, stemmed primarily from the decline against
the euro of the US dollar, the main Latin American currencies, the
Indian rupee and the Philippine peso. The positive scope effect
(+€31 million) was due to the consolidation of Health Advocate in
the consolidated financial statements since July 1, 2021.
The sharp revenue gain, which far exceeded a simple return to
pre-crisis growth trends, was mainly driven by continued strong
sales momentum in the Core Services and D.I.B.S. business.
Leveraging an efficient hybrid business model, combining
work-from-home and on-site solutions, the Group benefited from
accelerating market digitalization. It also consolidated its
positioning in the public sector, in particular with the deployment
of Covid-19 support services for governments. Adjusted for said
services, organic growth remained strong, close to +20% for the
first nine months of 2021. Specialized Services revenue also
trended upwards over the period, led by strong growth at
LanguageLine Solutions and the gradual recovery in the TLScontact
visa application management business.
Third-quarter 2021 revenue came in at €1,755 million, a
year-on-year increase of +20.8% on a like-for-like basis and +22.8%
as reported. The difference between like-for-like and reported
growth was mainly attributable to a scope effect related to the
consolidation of Health Advocate in the consolidated financial
statements since July 1, 2021.
As expected, “Covid contracts” made a lower contribution during
the period than in the previous quarters, given the high
vaccination coverage that has now been achieved. The third quarter
was also hampered by an unfavorable basis of comparison, which will
weigh even more heavily on the fourth-quarter performance, due to
the rapid business recovery in the second half of last year.
REVENUE BY ACTIVITY
Nine months 2021
Nine months 2020
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
4,604
3,609
+32.2%
+27.6%
English-speaking & Asia-Pacific
(EWAP)
1,510
1,285
+22.2%
+17.5%
Ibero-LATAM
1,370
1,111
+29.4%
+23.3%
Continental Europe & MEA (CEMEA)**
1,404
916
+55.1%
+53.3%
India**
320
297
+13.4%
+7.8%
SPECIALIZED SERVICES
582
479
+21.7%
+21.3%
TOTAL
5,186
4,088
+31.0%
+26.8%
Q3 2021
Q3 2020
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
1,529
1,265
+20.8%
+20.9%
English-speaking & Asia-Pacific
(EWAP)
518
429
+19.6%
+20.9%
Ibero-LATAM
475
400
+19.3%
+18.6%
Continental Europe & MEA (CEMEA)**
427
333
+28.7%
+28.2%
India**
109
103
+6.6%
+5.9%
SPECIALIZED SERVICES
226
163
+20.2%
+38.0%
TOTAL
1,755
1,428
+20.8%
+22.8%
* Digital Integrated Business Services ** 2020 data from the
CEMEA and India regions have been restated on a 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 €4,604 million
in the first nine months of 2021, a year-on-year like-for-like
increase of +32.2% that amply outperformed the market. Reported
revenue growth came to +27.6%, 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.
In the third quarter, like-for-like revenue growth came to
+20.8%, as sustained strong business development in the CEMEA and
Ibero-LATAM regions was supported by the faster expansion of the
digital economy, particularly in the e-tailing, logistics, social
media and online entertainment segments. The recovery in the hotel
and tourism sectors continued into the third quarter. However,
business growth was less brisk than in the previous two quarters
for two technical reasons: (i) a lower contribution from “Covid
contracts” as expected, particularly in the Netherlands and the
United Kingdom, given the high vaccination coverage that has now
been achieved; and (ii) an unfavorable basis of comparison due to
the rapid recovery in business as from third-quarter 2020.
- English-speaking & Asia-Pacific (EWAP)
Revenue for the EWAP region stood at €1,510 million for the
first nine months of 2021, a like-for-like increase of +22.2%. The
reported gain of +17.5% includes an unfavorable currency effect
stemming primarily from the decline of the US dollar against the
euro. In the third quarter, revenue grew +19.6% like-for-like.
Operations in the North American market – particularly offshore
business in the Philippines – reported satisfactory like-for-like
growth during the first nine months, with a gradual acceleration
over the full period. Performance was led by the e-tailing, online
entertainment, automotive and consumer electronics segments. Rapid
progress was made in the online food services and energy markets.
The hotel and tourism sectors – which had been hard hit by the
health crisis – returned to growth during the third quarter, lifted
by a favorable basis of comparison over the period. The temporary
labor shortage in the domestic labor market nevertheless weighed on
growth. The market could start to correct by the end of the year
with the end of the employment support measures put in place during
the health crisis.
Operations in the United Kingdom expanded very rapidly in the
first nine months, with the continued deployment of Covid-19
support services for the government, albeit – as expected – at a
slower pace in the third quarter than in previous quarters. A
further decline in the contribution from the Covid-19 services can
be anticipated in the fourth quarter. Business in other segments
benefited from solid sales momentum over the first nine months,
particularly in consumer electronics and energy.
In Asia, the continued rapid business growth mainly reflected
the contribution of recently signed contracts with global leaders
in the social media and online entertainment sectors, notably
served from the multilingual hubs in Malaysia.
Nine-month revenue for the Ibero-LATAM region came to €1,370
million, a year-on-year increase of +29.4% like-for-like. On a
reported basis, growth came out at +23.3%, with the difference
primarily reflecting the decline against the euro of the Brazilian
real, the Colombian peso, the Argentinian peso and the Mexican
peso.
Third-quarter revenue growth stood at +19.3% like-for-like. The
region maintained a robust pace of growth thanks to numerous
contract wins with e-clients and the deployment of an efficient
hybrid business model, combining work-from-home and on-site
solutions. As expected, growth was slower than in the previous
quarters given the 2020 comparatives shaped by the health
crisis.
Sharp gains were recorded during the first nine months in
Colombia, by the Group’s nearshore operations (Mexico, Dominican
Republic and El Salvador) and in Argentina. Activities in Portugal
also reported solid revenue growth, led by the strong performance
of its multilingual hubs serving global market leaders in the
digital economy.
Business across the region was particularly brisk in the
e-tailing, online entertainment, consumer electronics and financial
services segments and is recovering rapidly in the travel and hotel
sectors. The online food services, automotive and healthcare
segments made further progress.
- Continental Europe & MEA (CEMEA)
Revenue for the CEMEA region totaled €1,404 million in the first
nine months of 2021, representing a year‑on‑year like-for-like
increase of +55.1% that considerably outpaced the market. Reported
growth stood at +53.3%, primarily due to the decline in the Turkish
lira and Russian ruble against the euro.
Like-for-like revenue growth in the third quarter came to
+28.7%. As expected, growth was mechanically slower than in the
previous quarters due to the higher basis of comparison in the
second half of 2020. It reflected the rapid recovery in the Group’s
operations after the peak of the crisis and the start-up of support
services for government vaccination campaigns. Given the rapid
increase in vaccination coverage, the contribution from “Covid
contracts” could decline further and weigh significantly on growth
in the fourth quarter.
Growth was also supported by fast-expanding business with
multinational clients, particularly in the e-tailing, consumer
electronics and logistics segments, namely in the German- and
French-speaking markets, and in the Netherlands, Italy, Turkey,
Egypt, Romania and Russia. The hospitality and tourism segments
returned to growth during the third quarter.
In the first nine months of 2021, operations in India generated
€320 million in revenue, up +13.4% from the prior-year period on a
like-for-like basis and up +7.8% as reported. The difference was
due to the negative currency effect caused by the decline in the
Indian rupee against the euro.
In the third quarter, revenue growth was slower than in the
previous quarters, at +6.6%. The first half of the year benefited
from a particularly favorable basis of comparison, given the steep
falloff in business at the peak of the crisis last year.
Work-from-home solutions continue to be deployed on a large scale
and now apply to nearly 75% of the workforce. In the vast and
contrasting Indian market, the Group is focused on maintaining
profitable and selective growth through high value-added
services.
Offshore activities, which are the main source of regional
revenue and include high value-added solutions, as well as domestic
activities enjoyed solid growth over the first nine months. The
former benefited in particular from the firm growth in the consumer
electronics, online entertainment and online food services
segments, and the latter from contract ramp-ups in the e-retailing
and energy segments.
Revenue from Specialized Services stood at €582 million in the
first nine months of 2021, a year-on-year increase of +21.7%
like-for-like and of +21.3% as reported. The difference between
like-for-like and reported growth stemmed from an unfavorable
currency effect linked to the decline in the US dollar against the
euro and a positive scope effect (+€31 million) due to the
consolidation of Health Advocate in the consolidated financial
statements since July 1, 2021. Business grew by a strong +20.2%
like-for-like in the third quarter, despite a less favorable basis
of comparison.
The positive revenue growth that had resumed at TLScontact in
April continued into the third quarter led by high prior-period
comparatives (air traffic having been virtually halted in March
2020) and the still modest recovery in international travel to
date. The upturn in revenue, which depends on how the health crisis
evolves, is expected to continue the fourth quarter.
LanguageLine Solutions, the activity’s main contributor and
business growth driver, advanced at a brisk pace in the first nine
months of 2021. Growth in the third quarter, however, was affected
by less favorable comparatives than in the first two quarters, as
business in the healthcare sector in the United States was heavily
impacted in 2020 by the crisis at the beginning of the year.
The debt collection business in North America recorded solid
revenue growth in the first nine months of 2021, still buoyed by
strong sales momentum during the health crisis.
OUTLOOK
Based on the very solid performance delivered in the first nine
months, Teleperformance has raised its full‑year 2021 guidance
to:
- Like-for-like full-year revenue growth of at least +20%, versus
the previous growth target of around +18%.
- An EBITA margin before non-recurring items of around 15%,
versus the previous target of more than 14.5%.
In fourth-quarter 2021, the Group’s performance will continue to
benefit from its strong sales momentum and the sustained
acceleration of its digital transformation. Growth will however be
impacted by a high basis of comparison and a potentially reduced
contribution from government assistance services.
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
Wednesday, November 3, 2021 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 Financial
Publications (www.teleperformance.com), and by clicking on the
following link:
https://teleperformance.com/en-us/investors/publications-and-events/financial-publications/
INDICATIVE INVESTOR CALENDAR
Full-year 2021 results: February 17, 2022
First-quarter 2022 revenue: April 19, 2022
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
APPENDICES
APPENDIX 1 – QUARTERLY AND NINE-MONTH REVENUE BY
ACTIVITY
Nine months 2021
Nine months 2020
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
4,604
3,609
+32.2%
+27.6%
English-speaking & Asia-Pacific
(EWAP)
1,510
1,285
+22.2%
+17.5%
Ibero-LATAM
1,370
1,111
+29.4%
+23.3%
Continental Europe & MEA (CEMEA)**
1,404
916
+55.1%
+53.3%
India**
320
297
+13.4%
+7.8%
SPECIALIZED SERVICES
582
479
+21.7%
+21.3%
TOTAL
5,186
4,088
+31.0%
+26.8%
Q3 2021
Q3 2020
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
1,529
1,265
+20.8%
+20.9%
English-speaking & Asia-Pacific
(EWAP)
518
429
+19.6%
+20.9%
Ibero-LATAM
475
400
+19.3%
+18.6%
Continental Europe & MEA (CEMEA)**
427
333
+28.7%
+28.2%
India**
109
103
+6.6%
+5.9%
SPECIALIZED SERVICES
226
163
+20.2%
+38.0%
TOTAL
1,755
1,428
+20.8%
+22.8%
Q2 2021
Q2 2020
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
1,539
1,165
+37.8%
+32.1%
English-speaking & Asia-Pacific
(EWAP)
484
425
+20.7%
+14.0%
Ibero-LATAM
454
355
+33.5%
+27.8%
Continental Europe & MEA (CEMEA)**
495
299
+68.1%
+65.7%
India**
106
86
+29.9%
+22.8%
SPECIALIZED SERVICES
180
142
+37.6%
+26.5%
TOTAL
1,719
1,307
+37.7%
+31.5%
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 ** 2020 data from the
CEMEA and India regions have been restated on a 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
APPENDIX 2
QUARTERLY AND NINE-MONTH REVENUE BY ACTIVITY
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211103005871/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
Teleperformance (EU:TEP)
Historical Stock Chart
From Mar 2024 to Apr 2024
Teleperformance (EU:TEP)
Historical Stock Chart
From Apr 2023 to Apr 2024