BERTRANGE, Sweden--(BUSINESS WIRE)--Regulatory News:
Transcom WorldWide (STO:TWW):
” Transcom’s like-for-like revenue increased in the quarter, and we also saw our EBIT margin strengthen. Net income significantly improved compared to last year.”
Johan Eriksson, President & CEO of Transcom
· Like-for-like revenue increase by 2.4%, mainly driven by higher volumes in the North Europe and Iberia & Latam regions
· Profitability improvements in the North America & Asia Pacific and Iberia & Latam regions
· EBIT margin improved from 3.4% to 3.7%. Excluding since-divested CMS business and a positive one-off effect in the collections business in Q1 2014, the margin improvement was 2.1 percentage points.
· Significant improvement in net income to €5.3 million (€1.6 million in Q1 2014)
Q1 2015 financial highlights
· Revenue €160.9 million (€160.1 million in Q1 2014). Adjusted for exchange rate impact and divested operations, revenue increased by 2.4%
· Gross margin 19.6%, a 1.1 percentage point decrease compared to Q1 2014 (20.7%)
· EBIT €5.9 million (3.7%) compared to €5.4 million (3.4%) in Q1 2014.
· EPS 20.5 Euro cents compared to 6.2 Euro cents* in Q1 2014.
* EPS for 2014 has been adjusted to reflect the reverse split as if it had occurred per January 2014
Comments from the President and CEO
Both like-for-like revenue and EBIT margin improved in the first quarter. We saw higher business volumes in the North Europe and Iberia & Latam regions, while the profitability improvement was mainly driven by better performance in the North America & Asia Pacific and Iberia & Latam regions. We report a significant improvement in net income compared to last year. LIKE-FOR-LIKE 2.4% REVENUE INCREASE
On a like-for-like basis, adjusting for divestments and currency effects, revenue increased by €3.8 million (+2.4%). This growth was mainly generated by increased business volumes in North Europe and Iberia & Latam.
EBIT MARGIN IMPROVEMENT
Transcom’s EBIT margin in the quarter was 3.7% compared to 3.4% in Q1 2014 (1.6% excluding since-divested CMS business and a one-off effect in the collections business). Performance improvements in the North America & Asia Pacific and Iberia & Latam regions contributed positively. Profitability in the North region was flat, while we saw a decrease in the EBIT margin in the Central & South Europe region, mainly as a result of lower volumes in Italy and the start-up of new client projects in the region during the quarter.
Net income improved significantly, to €5.3 million in Q1 2015 from €1.6 million in Q1 2014, as a result of decreased income tax and an improvement in net financial items.
FOCUS ON OUR STRATEGIC PRIORITIES
Transcom’s strategic priorities are informed by our vision of being recognized as a global leader in customer experience.
We aim to grow together with our clients, further strengthening Transcom’s position as a strategic partner, while also seeking to strengthen Transcom’s global footprint. Transcom is currently starting up new projects with a number of clients, not least with existing clients with whom we are growing in new geographies. In this context, I am very pleased that Frost & Sullivan recently recognized Transcom’s growth in Peru and the Philippines by awarding us the Peru Frost & Sullivan Award for Growth Excellence Leadership, as well as the Frost & Sullivan Philippines Contact Center Outsourcing Growth Excellence Leadership Award.
We are also striving to continuously improve our service offering, focusing on advanced, value-added services. I am delighted that Frost & Sullivan has recognized Transcom in the innovation area as well. On April 13, it was announced that Transcom has won the 2015 European Frost & Sullivan Award for Visionary Innovation Leadership. This award is presented every year to a company that has demonstrated the understanding to leverage global Mega Trends and integrate the vision into processes to achieve strategic excellence.
Finally, it is important that we ensure that Transcom has a competitive operational platform, i.e. that our global business operations are efficient and effective. In 2015, we will focus on driving margins through maximizing our process and technology scalability, not least by increasing the degree of process and system standardization across our global operations. Pär Christiansen, our current CFO, will have a key role in this context, as he transitions into his new role as COO in June. Our new CFO, Ulrik Englund, will start his position at Transcom on June 15.
Johan Eriksson, President and CEO of Transcom
The interim report is also available for download on www.transcom.com
Results Conference Call and Webcast
Transcom will host a conference call at 10:30am CET (09:30am UK time) on Tuesday, April 21, 2014. The conference call will be held in English and will also be available as webcast on Transcom’s website, www.transcom.com.
To ensure that you are connected to the conference call, please dial in a few minutes before the start in order to register your attendance. No pass code is required.
Sweden: +46 8 505 564 74
UK: +44 203 364 5374
US: +1 855 753 2230
For a replay of the results conference call, please visit www.transcom.com to view the recorded webcast of the event.
Transcom WorldWide AB (publ) discloses the information provided herein pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on April 21, 2015 at 08:00 AM CET.
Transcom (http://www.transcom.com/) is a global customer experience specialist, providing customer care, sales, technical support and collections services through our extensive network of contact centers and work-at-home agents. We are 30,000 customer experience specialists at 54 contact centers across 23 countries, delivering services in 33 languages to over 400 international brands in various industry verticals. Transcom WorldWide AB’s share is listed on the Nasdaq Stockholm Exchange under the ticker symbol TWW.
This information was brought to you by Cision http://news.cision.com