Acceleration in growth and confirmed
full-year targets
- A new, expanded Group with the acquisition of Majorel: €5
billion in first-half revenue, up a reported +28.2%
- Pro forma growth: +1.7%*, with a faster +2.4% gain in the
second quarter
- Increase in pro forma EBITA margin, in line with full-year
targets
- Majorel integration plan well on track
- 2024 financial objectives confirmed, with momentum continuing
to improve over the second half of the year
- Strong cash flow and a robust balance sheet
Regulatory News:
The Board of Directors of Teleperformance, a leading global
group in digital business services, met today and reviewed the
consolidated financial statements for the six months ended June 30,
2024. The Group also announced its first-half 2024 financial
results.
Acceleration in growth and margins up, in line with full-year
targets
- H1 2024 revenue: €5,076 million, up +28.2% as reported
and +1.7% pro forma*
- Q2 2024 revenue: €2,534 million, up +29.7% as reported
and +2.4% pro forma*
- EBITDA before non-recurring items: €982 million, for a
margin of 19.4%, stable pro forma versus H1 2023
- EBITA before non-recurring items: €703 million, for a
margin of 13.9%, up +10 bps pro forma versus H1 2023 and up +20 bps
pro forma at constant exchange rates
- Adjusted net profit**: €432 million, up +25.9%
- Net free cash flow: €448 million, up +45.0%
Key highlights
- Specialized Services: excellent momentum confirmed by a
double-digit organic growth, notably led by LanguageLine Solutions
in the US
- Core Services & D.I.B.S.: back to pro forma growth in the
second quarter, thanks to improved volumes, notably in the
technologies and retailing verticals; the momentum in the financial
services and automotive industries is robust and the offshore
solutions continue to develop, notably in India for the US
market
- Majorel integration plan well on track over the first half,
with cost synergies confirmed at €100 million by end-2024 on a
run-rate basis and €150 million by end-2025 on a run-rate
basis
- More than 300 AI projects underway to improve the
competitiveness of Group clients
- Operations in 69 countries, representing 97% of the
consolidated workforce, have been certified as 2024 “Best
Employers” by the Great Place to Work® Institute
- The Board of Directors unanimously appointed Moulay Hafid
Elalamy as lead independent director and member of the Remuneration
and Appointments Committee, to replace Patrick Thomas, who is
retiring after nearly seven years on the Board of directors
Outlook for 2024
- 2024 financial targets confirmed: pro forma revenue growth* of
between +2% and +4%, and an increase in EBITA margin before
non-recurring items of between +10 bps and +20 bps on a pro forma
basis
- Growth expected to gain further momentum in the second half due
to lower prior-year comparatives and the impact of recently signed
new contracts ; Cost synergies are also expected to increase in the
second half of the year
- Sustained increase in the net free cash flow and pursuit of the
shareholder capital return policy
- Net debt ratio confirmed at less than 2x
* 2023 pro forma at constant exchange rates including Majorel **
Group share adjusted as defined in the Appendix (Alternative
Performance Measures)
Note: Pro forma first-half 2024 growth includes the impact of
high exchange rate volatility in hyperinflationary economies (+10
bps)
Commenting on this performance, Teleperformance Chairman and
Co-Chief Executive Officer Daniel Julien said: “Our performance
in the first half of 2024 was satisfactory, with an acceleration in
pro forma growth in the second quarter, to +2.4%, an improvement in
Group margin and a sharp increase in cash flow. The outstanding
results of the Specialized Services and the positive inflection of
the Core Services have enabled us to confirm our financial targets
for the year.
In a persistently volatile, competitive environment, the Group
enjoys three core advantages in pursuing its resilient,
value-creating growth: a base of more than 1,400 clients served
around the world, professional expertise addressing a very broad
spectrum of needs, and a diversified portfolio of solutions, with
specialized services positioned in fast growing markets.
The power of Teleperformance’s business model is rooted in a
High Touch, High Tech positionning deployed since the Group was
created. In High Tech, our AI innovation momentum is now being
driven by more than 300 projects, including some based on GenAI
that are making our clients more competitive. In High Touch,
operations in 69 countries, representing 97% of the consolidated
workforce, have been certified as 2024 “Best Employers” by the
Great Place to Work® Institute.
We're continuing to successfully integrate Majorel's operations
into Teleperformance. Our cost synergy plan is now well underway
and we can confirm our target of achieving €150 million in
identified synergies by the end of 2025. We are also working to
identify additional cost synergies.
Growth is expected to gain further momentum in the second half,
due to lower prior-year comparatives and the impact of recently
signed new contracts. We confirm our annual financial targets for
growth and margin expansion for 2024. We are also aiming to deliver
sustained growth of the net free cash flow, which will enable us to
continue our share buyback program while strengthening our balance
sheet by reducing our debt.”
INTERIM FINANCIAL HIGHLIGHTS
€ millions
H1 2024
H1 2023
H1 2023
€1=US$1.08
Pro forma
€1=US$1.08
Revenue
5,076
5,028
3,960
Reported
Pro forma
+28.2%
+1.7%(1)
EBITDA before non-recurring items
982(2)
974
807
% of revenue
19.4%
19.4%
20.4%
EBITA before non-recurring
items
703(2)
692
577
% of revenue
13.9%
13.8%(3)
14.6%
EBIT
503
446
Net profit – Group share
291
271
Diluted earnings per share (€)
4.83
4.59
Adjusted net profit – Group share(4)
Diluted adjusted earnings per share
(€)
432
7.17
343
5.81
Net free cash flow
448
309
- 2023 pro forma at constant exchange rates including
Majorel
- Excluding €36 million in synergy generation costs linked to the
acquisition of Majorel
- 13.7% at constant exchange rates
- as defined in the Appendix (Alternative Performance
Measures)
Note: Pro forma first-half 2024 growth includes the positive
impact of high exchange rate volatility in hyperinflationary
economies (+10 bps)
FIRST-HALF AND SECOND-QUARTER 2024 REVENUE
Consolidated revenue
Consolidated revenue came in at €5,076 million for the first
half of 2024, representing a year-on-year increase of +28.2% as
reported and of +1.7% pro forma.* The difference between
reported and pro forma growth primarily stemmed from the
consolidation of Majorel since November 1, 2023. The unfavorable
currency effect, which had a -€35 million impact on revenue, mainly
reflected the declines against the euro in the Argentine peso, the
Egyptian pound and the Turkish lira, which offset the positive
impact from a stronger Colombian peso. Adjusted for the impact of
high exchange rate volatility in such hyperinflationary economies
as Turkey and Argentina, pro forma growth came to +1.6%.
As expected, this first-half pro forma growth was shaped by a
persistently uncertain macroeconomic environment and an unfavorable
basis for comparison. It was lifted by an acceleration in the
second quarter, to +2.4% from +0.9% in the first, in line with the
Group’s roadmap for the year. In addition to more favorable
comparatives, the speed-up was attributable to the gradual upturn
in volumes in the Core Services & D.I.B.S. business over the
second quarter.
In the Core Services & D.I.B.S. business, pro forma*
growth was particularly strong in India (offshore services for the
North American market), the Asia-Pacific region and the
multilingual hubs in Europe. However, the momentum in offshore
solutions continued to exert deflationary effect on the Group’s
revenue growth over the period, particularly in the Americas. These
solutions accounted for 58% of revenue from Core Services &
D.I.B.S. over the period.
Growth remained particularly varied by industry vertical. The
financial services and automotive industries contributed the most
to growth, while retailing and technologies showed the first signs
of recovery. In contrast, the telecoms and social media verticals
remained subdued.
The Specialized Services business continued to deliver
fast-paced revenue growth, impelled by sustained gains in the
interpreting business (LanguageLine Solutions in the United States)
and the ongoing post-Covid upsurge in the visa application
management business (TLSContact).
Second-quarter 2024 revenue amounted to €2,534 million, for a
year-on-year increase of +2.4% pro forma* and of +29.7% as
reported. The difference between reported and pro forma growth
primarily stemmed from the consolidation of Majorel since November
1, 2023. Growth also included a slightly negative currency effect
from the declines against the euro in the Argentine peso and the
Egyptian pound, which were partially offset by gains in the
Colombian peso and the US dollar.
Pro forma consolidated revenue growth is expected to gain
further momentum in the second half, due to lower prior-year
comparatives and the impact of recently signed new contracts.
- Analysis of first-half 2024 revenue growth
* 2023 pro forma at constant exchange rates including
Majorel
Revenue by activity
H1 2024
H1 2023
% change
€ millions
As reported
Pro forma**
CORE SERVICES & D.I.B.S.*
4,340
3,297
+31.6%
+0.1%
Americas
2,085
1,935
+7.8%
-1.7%
Europe, MEA & Asia-Pacific
2,255
1,362
+65.5%
+1.8%
SPECIALIZED SERVICES
736
663
+11.1%
+12.0%
TOTAL
5,076
3,960
+28.2%
+1.7%
Q2 2024
Q2 2023
% change
€ millions
As reported
Pro forma**
CORE SERVICES & D.I.B.S.*
2,155
1,612
+33.7%
+1.1%
Americas
1,039
949
+9.5%
-0.3%
Europe, MEA & Asia-Pacific
1,116
663
+68.2%
+2.4%
SPECIALIZED SERVICES
379
342
+10.8%
+10.4%
TOTAL
2,534
1,954
+29.7%
+2.4%
* Digital Integrated Business Services ** 2023 pro forma at
constant exchange rates including Majorel
- Core Services & Digital Integrated
Business Services (D.I.B.S.)
Core Services & D.I.B.S. revenue amounted to €4,340 million
in first-half 2024, up +31.6% year-on-year as reported and
virtually stable (+0.1%) on a pro forma basis*. The currency effect
was unfavorable, as declines against the euro in the Argentine
peso, the Egyptian pound and the Turkish lira offset the positive
impact from a stronger Colombian peso.
This resiliency in a volatile economic environment reflected the
diversity of Teleperformance’s client and service lines portfolio.
The automotive and financial services verticals were the most
vibrant, along with back-office services.
Core Services & D.I.B.S. revenue growth turned upwards in
the second quarter to reach €2,155 million, gaining +1.1% pro forma
year-on-year after declining by -0.9% in the first three months.
The performance, which supports the Group’s roadmap for the year,
was led by the faster growth in business in most client verticals,
with retailing and technologies showing the first signs of
recovery. On a reported basis, revenue climbed by a strong +33.7%.
The currency effect was fairly neutral, as declines in the
Argentine peso and Egyptian pound against the euro were offset by
gains in the Colombian peso and US dollar.
Revenue in the Americas region amounted to €2,085 million in the
first six months of 2024, a year-on-year increase of +7.8% as
reported. On a pro forma basis, revenue was down -1.7%. The
currency effect was slightly negative, as the strong gains in the
Colombian peso against the euro were dampened by declines in the
Argentine peso and the Indian rupee. Second-quarter pro forma
revenue was relatively flat year-on-year, down -0.3%, but showed an
improvement from the -3.1% decline in the first three months.
* 2023 pro forma at constant exchange rates including
Majorel
The highly competitive offshore solutions continued to enjoy
fast growth, particularly in India to serve the North American
market. The Indian operations benefited from the shift in demand
from the Latin American nearshore operations, which became less
competitive after local currencies rose against the US dollar,
particularly in Mexico and Colombia. The growth in offshore
services had a deflationary effect that weighed on revenue for the
region as a whole.
In Latin America, domestic business grew at a satisfactory pace
in most countries, particularly in the second quarter, led by the
ramp-up of new contracts.
The financial services and automotive verticals pursued their
very robust growth throughout the first half, led by the ramp-up of
major new contracts. However, this momentum was offset by softer
demand in the social media, logistics and healthcare verticals.
- Europe, MEA & Asia-Pacific
Revenue for the region amounted to €2,255 million in the first
half of 2024, a year-on-year increase of +65.5% as reported and of
+1.8% on a pro forma basis. The currency effect was unfavorable,
mainly due to the decline in the Turkish lira and Egyptian pound
against the euro. Pro forma revenue growth accelerated somewhat in
the second quarter, to +2.4% from +1.3% in the first three
months.
Asia-Pacific delivered the region’s best performance, supported
in particular by the swift ramp-up of contracts in the social media
and travel verticals.
Multilingual activities, which are the primary contributors to
the region’s revenue stream, particularly in Greece and Portugal,
and mainly serve the large global leaders in their industries,
reported satisfactory growth in the second quarter, with a slightly
faster gain over the first three months. Over the first half as a
whole, the automotive, travel and retailing sectors delivered the
strongest growth, driven by business development in Greece.
Revenue from Specialized Services stood at a particularly high
€736 million in first-half 2024, a year-on-year increase of +12.0%
based on pro forma figures and of +11.1% as reported. The
difference between pro forma and reported figures is due to a
slightly negative currency effect resulting from the decline in the
Nigerian naira against the euro. Pro forma revenue growth in the
second quarter alone came to +10.4%.
LanguageLine Solutions, the main contributor to Specialized
Services revenue, continued to report significant growth throughout
the first half, powered by market share gains in its fast-growing
vertical in the United States. This excellent performance was
attributable to the ongoing development of video and telephone
interpreting solutions and the growth in digital platforms.
TLSContact continued to enjoy fast business growth, buoyed by
the post-Covid upsurge in visa application management activities,
which nevertheless slowed year-on-year owing to an unfavorable
basis for comparison.
FIRST-HALF 2024 RESULTS
EBITDA before non-recurring items excluding synergy generation
costs stood at €982 million for the first six months of 2024,
compared with €807 million in the prior-year period.
EBITA before non-recurring items excluding synergy generation
costs came to €703 million, representing a margin of 13.9%,
compared with a reported €577 million (14.6% margin) and a pro
forma €692 million (13.8% margin) in the first half of 2023. Pro
forma margin widened by +10 bps as reported and by +20 bps at
constant exchange rates (13.7% pro forma margin at constant
exchange rates in first-half 2023). The improvement was primarily
led by:
- The Core Services & D.I.B.S.
margin of 11.0% for the period, down from 11.6% on a pro forma
basis a year earlier, due mainly to the adverse impact of exchange
rate movements on nearshore margins in the Latin America. However,
the margin began to be positively impacted during the first half by
the cost synergy plan underway as part of the Majorel integration
process. This positive effect will accelerate in the second
half.
- The increase in the Specialized Services
margin to 30.7% over the period, from 28.3% in first-half
2023.
Earnings by activity
EBITA before non-recurring
items
H1 2024
H1 2023
€ millions
Pro forma**
Reported
CORE SERVICES & D.I.B.S.*
477
505
390
% of revenue
11.0%
11.6%
11.8%
Americas
249
259
230
% of revenue
12.0%
12.3%
11.9%
Europe, MEA & Asia-Pacific
209
200
115
% of revenue
9.3%
8.9%
8.5%
Holding companies
19
46
45
SPECIALIZED SERVICES
226
187
187
% of revenue
30.7%
28.3%
28.3%
TOTAL EBITA before non-recurring
items***
703
692
577
% of revenue
13.9%
13.8%
14.6%
TOTAL EBITA before non-recurring items at
constant exchange rates***
703
686
-
% of revenue
13.9%
13.7%
-
* Digital Integrated Business Services ** 2023 pro forma
including Majorel *** Excluding synergy generation costs linked to
the acquisition of Majorel
Core Services & D.I.B.S. delivered EBITA before
non-recurring items of €477 million and a margin of 11.0% in
first-half 2024, compared with a pro forma €505 million and 11.6% a
year earlier. The overall contraction in pro forma margin reflected
contrasting trends by region, with weakness in the Americas, due in
particular to the adverse impact of exchange rate movements on
offshore services margins in Latin America, and gains in the EMEA
region, led by the initial positive outcomes of the cost synergy
plan underway as part of the Majorel integration process. The
year-on-year drop in pro forma EBITA from the holding companies, to
€19 million from €46 million in first-half 2023, was caused by such
factors as the cost of integrating and aligning Majorel’s IT and
digital systems with the Group’s organization and enhanced
corporate resources.
In the Americas region, EBITA before non-recurring items totaled
€249 million in first-half 2024, compared with a pro forma €259
million at constant exchange rates in the prior-year period. Pro
forma EBITA margin declined over the period, to 12.0% from 12.3% in
first-half 2023, as the negative currency impact on nearshore
services in Latin America due to the strength of local currencies
against the US dollar, essentially in Mexico and Colombia, offset
the positive mix effect of the sustained profitable growth in
offshore services in India.
- Europe, MEA & Asia-Pacific
The EMEA and Asia-Pacific region generated EBITA before
non-recurring items of €209 million in first-half 2024, up from a
pro forma €200 million a year earlier. Pro forma EBITA margin
widened to 9.3% from 8.9% in first-half 2023. These good results
were underpinned by the initial positive outcomes of the cost
synergy plan underway as part of the Majorel integration process,
the robust growth in business in the Asia-Pacific region and the
firm performance of multilingual hub solutions in Europe.
EBITA before non-recurring items from Specialized Services stood
at €226 million in first-half 2024, versus a pro forma €187 million
a year earlier. Pro forma EBITA margin increased to 30.7% from
28.3% in first-half 2023.
As expected, LanguageLine Solutions' operating margin showed a
solid improvement from first-half 2023, when it was impacted by a
shortage of interpreters in the United States at a time of strong
client demand. The company’s business model remains robust and
based on the sustained, structural growth in demand, entirely
home-based interpreters, unrivaled technological capabilities and a
very assertive marketing process.
TLScontact continued to improve its operating margin, thanks to
the sustained upturn in business volumes and the very dynamic
growth in premium ancillary services.
Other income statement items
EBIT amounted to €503 million, versus €446 million in first-half
2023. It included in particular:
- amortization of acquisition-related intangible assets in an
amount of €110 million;
- €48 million in accounting expenses relating to performance
share plans.
- €36 million in synergy generation costs linked to the
acquisition of Majorel
The financial result represented a net expense of €99 million,
versus €74 million one year earlier. The growth in finance costs
reflected the increase in net debt in 2023 to finance the Majorel
acquisition at year-end and the impact of rising interest rates on
the variable portion of debt. However, foreign exchange gains have
positively impacted the financial result. Given the current
environment, the 4.4% interest rate on financial liabilities is
still a satisfactory level for the Group.
Income tax expense came to €113 million, corresponding to an
effective tax rate of 28.0%, versus 27.3% in the prior year.
Net profit – Group share totaled €291 million, versus €271
million in first-half 2023, while diluted earnings per share came
to €4.83, versus €4.59 in first-half 2023.
Adjusted net profit – Group share* totaled €432 million, up
+25.9% from €343 million in first-half 2023, while diluted earnings
per share came to €7.17, versus €5.81 in first-half 2023.
Cash flows and financial structure
Net free cash flow after lease expenses, interest and tax paid
amounted to €448 million, versus €309 million the year before,
representing an improvement of +45%. Excluding the €25 million in
cash outlays to generate cost synergies from integrating Majorel,
net free cash flow came to €473 million for the period.
The change in consolidated working capital requirement was an
outflow of €46 million in first-half 2024, compared with an outflow
of €30 million in the prior-year period.
Net capital expenditure amounted to €86 million, or 1.7% of
revenue, versus €111 million and 2.8% in first-half 2023. The
decline was attributable both to the ongoing optimization of the
Group’s work-from-home and on-site operating capacity and to the
deployment of the cloud-based virtual desktop infrastructure across
the operating base.
After the payment of €231 million in dividends and deployment of
a €117 million share buyback program, net debt stood at €4,459
million at June 30, 2024, down from €4,553 million at December 31,
2023 thanks to the strong net cash flow generated over the
period.
* As defined in the Appendix (Alternative Performance
Measures)
OPERATING HIGHLIGHTS
- Best Employer certifications: 69
countries certified, representing 97% of Group
employees
Teleperformance has made the well-being of its employees a key
priority worldwide. Operations in 69 countries were certified in
July 2024 as “Best Employers” by the Great Place to Work®
Institute. 97% of Teleperformance employees worldwide work in an
organization certified as a Great Place to Work®.
- More than 300 AI projects underway on
behalf of Group clients
The Group is currently working in close partnership with its
clients on more than 300 AI-projects including projects with
Gen-AI, in various stages of development. For the past few years,
Teleperformance had a fairly holistic approach to AI and has been
embedding AI in products and processes used in the daily life. AI
solutions generate savings and improve the operational outcomes for
the group’s clients, notably quality, accuracy and sales
conversion. In this respect, Telepeformance has very recently
received top honors at the Globee® 2024 Golden Bridge Awards® for
its AI-driven digital solution that streamlines back-office
business processes for clients.
- Change of lead independent
director
Moulay Hafid Elalamy has been unanimously appointed lead
independent director and member of the Remuneration and
Appointments Committee, to replace Patrick Thomas, who has decided
to retire after nearly seven years on the Board of Directors. The
Board warmly thanks Mr. Elalamy for having agreed to take on this
crucial role in ensuring the Group's good governance practices. It
also sincerely thanks Mr. Thomas for all his years of active
participation in the corporate life of the company.
OUTLOOK FOR 2024
On the strength of a good first half, the Group confirms its
annual financial targets:
- pro forma revenue growth* of +2% to +4%;
- increase in EBITA margin before non-recurring items of between
+10 bps and +20 bps on a pro forma basis and excluding synergy
generation costs linked to the acquisition of Majorel
The Group targets a sustained increase in net free cash flow and
a net debt-to-EBITDA ratio of less than 2x. The Group intends to
pursue its shareholder capital return policy, through the
completion of the share buyback program announced in 2023 (around
80 million euros remaining), while reducing debt.
Business growth is expected to gain further momentum in the
second half, due to lower prior-year comparatives and the impact of
recently signed new contracts. In addition, the generation of
synergy costs should increase in the second half.
* On a pro forma basis in 2023, including Majorel’s operations
over 12 months
-----------------
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.
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/20240730_1/
The half-year financial report and presentation materials will
be available after the conference call on Teleperformance’s website
(www.teleperformance.com) – section Investor Relations / Press
releases and documentation / Annual and half-yearly financial
information, and by clicking on the following link:
https://www.teleperformance.com/en-us/investors/publications-and-events/financial-publications/
Indicative investor calendar
Third-quarter 2024 revenue : November 6, 2024
About Teleperformance Group
Teleperformance (TEP – ISIN: FR0000051807 – Reuters: TEPRF.PA
- Bloomberg: TEP FP), is a global leader in digital business
services that consistently seeks to blend the best of advanced
technology with human empathy to deliver enhanced customer care
that is simpler, faster, and safer for the world’s biggest brands
and their customers. The Group’s comprehensive, AI-powered service
portfolio ranges from front-office customer care to back-office
functions, including operations consulting and high-value digital
transformation services. It also offers a range of specialized
services such as collections, interpreting and localization, visa
and consular services, and recruitment process outsourcing
services. The teams of multilingual, inspired, and passionate
experts and advisors, spread across nearly 100 countries, along
with Group’s local presence allow it to be a force of good in
supporting communities, clients, and the environment. In 2023,
Teleperformance reported consolidated revenue of €8,345 million
(US$9 billion) and net profit of €602 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
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 X
(Twitter): @teleperformance
Appendix 1 – Quarterly and Half-Yearly Revenue by
Activity
H1 2024
H1 2023
% change
€ millions
As reported
Pro forma**
CORE SERVICES & D.I.B.S.*
4,340
3,297
+31.6%
+0.1%
Americas
2,085
1,935
+7.8%
-1.7%
Europe, MEA & Asia-Pacific
2,255
1,362
+65.5%
+1.8%
SPECIALIZED SERVICES
736
663
+11.1%
+12.0%
TOTAL
5,076
3,960
+28.2%
+1.7%
Q2 2024
Q2 2023
% change
€ millions
As reported
Pro forma**
CORE SERVICES & D.I.B.S.*
2,155
1,612
+33.7%
+1.1%
Americas
1,039
949
+9.5%
-0.3%
Europe, MEA & Asia-Pacific
1,116
663
+68.2%
+2.4%
SPECIALIZED SERVICES
379
342
+10.8%
+10.4%
TOTAL
2,534
1,954
+29.7%
+2.4%
Q1 2024
Q1 2023
% change
€ millions
As reported
Pro forma**
CORE SERVICES & D.I.B.S.*
2,184
1,685
+29.7%
-0.9%
Americas
1,046
986
+6.1%
-3.1%
Europe, MEA & Asia-Pacific
1,138
699
+62.9%
+1.3%
SPECIALIZED SERVICES
358
321
+11.3%
+13.7%
TOTAL
2,542
2,006
+26.7%
+0.9%
* Digital Integrated Business Services ** 2023 pro forma at
constant exchange rates including Majorel
Appendix 2 – Simplified Consolidated Financial
Statements
Consolidated income statement
€ millions
1st ½ year 2024 1st ½ year 2023
Revenues
5,076
3,960
Other revenues
5
3
Personnel
-3,461
-2,680
External expenses
-653
-462
Taxes other than income taxes
-21
-14
Depreciation and amortization
-148
-126
Amortization of intangible assets acquired as part of a business
combination
-110
-64
Depreciation of right-of-use assets (personnel-related)
-8
-9
Depreciation of right-of-use assets
-123
-95
Impairment loss on goodwill
-1
-4
Share-based payments
-48
-58
Other operating income and expenses
-5
-5
Share of profit or loss of equity-accounted investees
Operating profit
503
446
Income from cash and cash equivalents
13
7
Gross financing costs
-112
-50
Interest on lease liabilities
-30
-22
Net financing costs
-129
-65
Other financial income and expenses
30
-9
Financial result
-99
-74
Profit before taxes
404
372
Income tax
-113
-101
Net profit
291
271
Net profit - Group share
291
271
Net profit attributable to non-controlling interests
Earnings per share (in euros)
4.85
4.64
Diluted earnings per share (in euros)
4.83
4.59
Consolidated balance sheet
€ millions
ASSETS 6/30/2024 12/31/2023*
Non-current assets Goodwill
4,512
4,434
Other intangible assets
2,236
2,314
Right-of-use assets
708
767
Property, plant and equipment
626
689
Loan hedging instruments
3
3
Other financial assets
101
107
Equity-accounted investees
5
5
Deferred tax assets
157
145
Total non-current assets
8,348
8,464
Current assets Current income tax receivable
147
117
Accounts receivable - Trade
2,240
2,130
Other current assets
364
361
Derivative financial instruments - positive fair values
2
4
Other financial assets
78
111
Cash and cash equivalents
996
881
Total current assets
3,827
3,604
TOTAL ASSETS
12,175
12,068
EQUITY AND LIABILITIES 6/30/2024 12/31/2023*
Equity Share capital
151
159
Share premium
763
1,098
Translation reserve
-49
-117
Other reserves
3,383
3,081
Equity attributable to owners of the Company
4,248
4,221
Non-controlling interests
0
6
Total equity
4,248
4,227
Non-current liabilities Post-employment benefits
86
78
Lease liabilities
558
608
Loan hedging instruments
13
10
Other financial liabilities
3,673
3,821
Deferred tax liabilities
542
561
Total non-current liabilities
4,872
5,078
Current liabilities Provisions
117
114
Current income tax
203
200
Accounts payable - Trade
314
324
Other current liabilities
1,205
1,118
Lease liabilities
221
228
Other financial liabilities
995
779
Total current liabilities
3,055
2,763
TOTAL EQUITY AND LIABILITIES
12,175
12,068
* Restated following the provisional measurement of the assets and
liabilities of Majorel (see note 2 Consolidation scope)
Consolidated cash flow statement
€ millions
in millions of euros
Cash flows from operating activities
1st ½ year 2024 1st ½ year 2023 Net
profit - Group share
291
271
Income tax expense
113
101
Net financial interest expense
106
41
Interest expense on lease liabilities
30
22
Non-cash items of income and expense
440
353
Income tax paid
-163
-168
Internally generated funds from operations
817
620
Change in working capital requirements
-46
-30
Net cash flow from operating activities
771
590
Cash flows from investing activities
Acquisition of intangible assets and
property, plant and equipment
-88
-112
Loans granted
-1
-3
Proceeds from disposals of intangible assets and property, plant
and equipment
2
1
Loans repaid
1
Net cash flow from investing activities
-86
-114
Cash flows from financing activities
Acquisition net of disposal of treasury
shares
-117
-51
Change in ownership interest in controlled entities
-6
Dividends paid to parent company shareholders
-231
-227
Financial interest paid
-73
-41
Lease payments
-164
-126
Increase in financial liabilities
1,268
1,593
Repayment of financial liabilities
-1,226
-1,670
Net cash flow from financing activities
-549
-522
Change in cash and cash equivalents
136
-46
Effect of exchange rates on cash held
-12
-42
Net cash at January 1st
866
813
Net cash at June 30th
990
725
Appendix 3 – 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.
H1 2023 revenue
3,960
Majorel
1,068
H1 2023 revenue pro forma
5,028
Currency effect
-35
H1 2023 revenue pro forma at constant
exchange rates
4,993
Like-for-like growth
83
Change in scope
-
H1 2024 revenue
5,076
Pro forma revenue: The pro forma revenue reflects the
impact from the acquisition of 100% control of Majorel by
Teleperformance on the revenue of Teleperformance for the year
ended December 31, 2023, as if the transaction took place on
January 1, 2023.
Change in pro forma revenue (or pro forma growth): Change
in revenue at constant exchange rates and scope of consolidation,
as if the acquisition of 100% control of Majorel by Teleperformance
took place on January 1, 2023 = [2024 revenue – 2023 pro forma
revenue at 2024 exchange rates] / 2023 pro forma revenue at 2024
exchange rates
EBITDA before non-recurring items or current EBITDA (Earnings
before Interest, Taxes, Depreciation and Amortizations):
Operating profit before depreciation & amortization,
depreciation of right-of-use of leased assets, amortization of
intangible assets acquired as part of a business combination,
goodwill impairment charges and non-recurring items.
H1 2024
H1 2023
Operating profit
503
446
Depreciation and amortization
148
126
Depreciation of right-of-use of leased
assets
123
95
Depreciation of right-of-use of leased
assets – personnel related
8
9
Amortization of intangible assets acquired
as part of a business combination
110
64
Goodwill impairment
1
4
Share-based payments
48
58
Other operating income and expenses
5
2
EBITDA before non-recurring
items
946
807
Synergy implementation costs linked to the
acquisition of Majorel
36
-
EBITDA before non-recurring items
excluding synergy generation costs
982
807
EBITA before non recurring items or current EBITA (Earnings
before Interest, Taxes and Amortizations): Operating profit
before amortization of intangible assets acquired as part of a
business combination, goodwill impairment charges and non-recurring
items.
H1 2024
H1 2023
Operating profit
503
446
Amortization of intangible assets acquired
as part of a business combination
110
64
Goodwill impairment
1
4
Share-based payments
48
58
Other operating income and expenses
5
5
EBITA before non-recurring
items
667
577
Synergy generation costs linked to the
acquisition of Majorel
36
-
EBITA before non-recurring items
excluding synergy generation costs
703
5777
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.
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.
Adjusted net profit – Group share: net profit - Group
share + amortization of intangible assets acquired as part of a
business combination + goodwill impairment + other operating income
and expenses + tax effects on adjustments.
H1 2024
H1 2023
Net profit – Group share
291
271
Amortization of intangible assets acquired
as part of a business combination
110
64
Goodwill impairment
1
4
Other operating income and expenses
5
5
Synergy generation costs linked to the
acquisition of Majorel
36
-
Tax effect on adjusted items*
-11
-1
Adjusted net profit – Group
share
432
343
* Tax linked to the adjusted deductible expenses (other
operating income and expenses + synergy generation costs linked to
the acquisition of Majorel) based of the effective tax rate of the
period: 28.0% in H1 2024 and 27.3% in H1 2023
Net free cash flow: Cash flow generated by the business -
acquisitions of intangible assets and property, plant and equipment
net of disposals - loans granted net of repayments - lease payments
- financial income/expenses.
H1 2024
H1 2023
Net cash flow from operating
activities
771
590
Acquisition of intangible assets and
property, plant and equipment
-88
-112
Proceeds from disposals of intangible
assets and property, plant and equipment
2
1
Loan granted
-1
-3
Loan repaid
1
-
Lease payments
-164
-126
Financial interest paid
-73
-41
Net cash flow from financing
activities
448
309
Net debt:
Current and non-current financial liabilities - cash and cash
equivalents
06/30/2024
12/31/2023
Non-current liabilities*
Financial liabilities
3,673
3,821
Current liabilities*
Financial liabilities
995
779
Lease liabilities (IFRS 16)
779
836
Loan hedging instruments
8
3
Cash and cash equivalents
996
881
Net debt
4,459
4,558
* Excluding lease liabilities (IFRS 16)
NB: The alternative performance
measures (APMs) are defined in the Appendix
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240730365068/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 Karine Allouis – Laurent
Poinsot IMAGE7 Tel: +33 1 53 70 74 70 teleperformance@image7.fr
PRESS RELATIONS Americas and Asia-Pacific Nicole
Miller TELEPERFORMANCE Tel: + 1 629-899-0675
tppublicaffairs@teleperformance.com
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