Teleperformance: Third-Quarter 2015 Revenue

+ 7.5% like-for-like growth* in the first nine months of the year

PARIS--()--Regulatory News:

Teleperformance (Paris:RCF), the global leader in outsourced multichannel customer experience management, today released its quarterly and nine-month revenue for the period ended September 30, 2015.

SUSTAINED REVENUE GROWTH

  • First nine months of 2015: €2,496 million, up + 7.5% like-for-like*
  • Third-quarter 2015: €838 million, up + 7.0% like-for-like*

2015 OUTLOOK

  • Like-for-like revenue growth* of at least + 7%
  • EBITA margin before non-recurring items of at least 10.3%, versus 9.7% in 2014
  • Strong growth in net free cash flow

Daniel Julien, Executive Chairman, and Paulo César Salles Vasques, Chief Executive Officer, Teleperformance Group, said: "Teleperformance continued to enjoy sustained business momentum over the first nine months of 2015. The pace of growth was brisk in all regions during the period, outpacing the global outsourcing market.

The Group recorded once again good like-for-like growth for the third quarter (+ 7%), reflecting our time-tested business model and solid leadership based on our unique global presence in more than 60 countries.

For 2015, we are confirming our full-year guidance, targeting like-for-like revenue growth of at least + 7% and an EBITA margin before non-recurring items of at least 10.3%. We are also confirming that we are expecting a sharp increase in net free cash flow in 2015, further increasing our ability to seize opportunities in a still highly fragmented market.”

*at constant exchange rates and scope of consolidation

GROUP REVENUE

€ millions   2015   2014   % change
      Reported   Like-for-like
NINE MONTHS (TO SEPTEMBER 30)   2,496   1,953   + 27,8%   + 7.5%
THIRD QUARTER   838   708   + 18.3%   + 7.0%
  • Nine months to September 30, 2015

Revenue came in at €2,496 million for the first nine months of 2015, representing a year-on-year increase of + 7.5% at constant exchange rates and scope of consolidation (like-for-like).

On a reported basis, growth amounted to + 27.8%. It includes the aggregate €225 million contribution from Aegis USA Inc., consolidated since August 7, 2014, and City Park Technologies (CPT), consolidated since July 1, 2014. It also reflects the €159 million positive currency effect arising notably from the increase in the US dollar and the pound sterling against the euro.

  • Third-quarter 2015

Revenue came in at €838 million for the third quarter of 2015, up a sharp + 7% on the prior-year period like-for-like. Reported revenue improved by + 18.3%.

REVENUE BY REGION

The geographic mix remains robust and balanced across all regions.

In the nine months to September 30, 2015, the English-speaking market & Asia-Pacific region represented 50% of consolidated revenue, the Ibero-LATAM region 25% and Continental Europe & MEA 25%.

The pace of growth was brisk in all regions during the period, outpacing the global outsourcing market (which is growing by + 5% per year).

€ millions   2015   2014   % change
      Reported   Like-for-like
                 
NINE MONTHS (TO SEPTEMBER 30)                
English-speaking market & Asia-Pacific   1,236   814   + 51.9%   + 5.5%
Ibero-LATAM   617   562   + 9.7%   + 6.8%
Continental Europe & MEA   643   577   + 11.4%   + 11.7%
TOTAL   2,496   1,953   + 27.8%   + 7.5%
                 
THIRD QUARTER                
English-speaking market & Asia-Pacific   422   319   + 32.0%   + 4.0%
Ibero-LATAM   194   195   - 0.2%   + 4.1%
Continental Europe & MEA   222   194   + 14.4%   + 15.5%
TOTAL   838   708   + 18.3%   + 7.0%
                 
    2015   2014   Reported   Like-for-like
SECOND QUARTER                
English-speaking market & Asia-Pacific   399   249   + 59.8%   + 3.0%
Ibero-LATAM   214   188   + 13.8%   + 7.9%
Continental Europe & MEA   214   198   + 8.4%   + 7.8%
TOTAL   827   635   + 30.2%   + 5.7%
FIRST QUARTER                
English-speaking market & Asia-Pacific   416   245   + 69.7%   + 9.9%
Ibero-LATAM   209   180   + 16.3%   + 8.3%
Continental Europe & MEA   206   185   + 11.5%   + 12.0%
TOTAL   831   610   + 36.3%   + 10.0%
  • English-speaking market & Asia-Pacific

Compared with the prior year, regional revenue rose by + 5.5% like-for-like over the nine-month period. The reported increase came to + 51.9%, led mainly by the acquisition in the United States and the positive currency effect.

In the third quarter, revenue rose by + 4.0% like-for-like and by + 32.0% as reported due to the favorable currency environment coupled with acquisitions.

Business growth in the United States continued to be driven chiefly by the ramp-up of major domestic contracts signed in the healthcare, financial services, insurance, and hospitality and leisure industries. The Group also saw a sharp increase in business with existing clients in the consumer electronics sector.

The pace of growth remained strong in China, where Teleperformance provides solutions on behalf of locally based North American multinationals, thanks to a good consumer environment, particularly in consumer electronics. The Group is strengthening its presence in the country by opening and expanding new facilities.

  • Ibero-LATAM

The Ibero-LATAM region delivered robust revenue growth in the first nine months of 2015, advancing + 6.8% like-for-like and + 9.7% as reported. The difference was mainly due to the favorable currency environment mainly driven by the increase in the US dollar.

In the third quarter, revenue rose by + 4.1% like-for-like but remained stable as reported (- 0.2%) due to an unfavorable currency environment primarily resulting from the recent decline in the Brazilian real and Colombian peso against the euro, which offset the positive effect of the US dollar's rise against the euro.

Despite a still challenging economic environment, activities in Brazil remained dynamic, with Teleperformance continuing to win new contracts with existing premium clients in the financial services, Internet and retail industries.

Operations in Portugal continued to deliver satisfactory growth, still powered by the success of the Lisbon-based multilingual platforms serving major multinationals.

Good performances in Argentina, Colombia and El Salvador offset lower activity in telecommunications sector activities in Mexico.

  • Continental Europe & MEA

Regional revenue rose by + 11.7% like-for-like and by + 11.4% as reported in the first nine months of the year, with growth accelerating to + 15.5% like-for-like and + 14.4% as reported in the third quarter.

The Group continues to post solid business gains with global clients in a number of markets in Southern, Northern and Eastern Europe (Russia). In the Netherlands and Greece, growth gained momentum in the third quarter, reflecting strong performances in e-commerce and consumer electronics.

Thanks to healthy growth in offshore business in Morocco and Tunisia, and renewed expansion in the domestic market, revenue from the French-speaking market returned to growth in the third quarter of 2015. Action plans aimed at restoring profitability in France continued at a good pace and on track with the Group's targets.

Germany and, to a lesser extent, the Nordic countries, remain highly competitive markets where developing the Group's solutions profitably is more challenging.

The rapid expansion of subsidiary TLScontact, which provides visa application management services for governments, continued to have a highly positive impact on the region's growth, spurred by a still high volume of visa applications from China and North Africa for travel to the Schengen area.

2015 OUTLOOK

Based on the strong performances achieved in the first nine months of the year, the Group is confirming its full-year guidance, targeting like-for-like revenue growth of at least + 7% and an EBITA margin before non-recurring items of at least 10.3%, compared with 9.7% in 2014.

In addition, Teleperformance confirms its target of strong growth in its net free cash flow versus 2014.

CONFERENCE CALL WITH ANALYSTS AND INVESTORS

Wednesday, November 12, 2015 at 6:15 pm CET
Presentation materials will also be available at www.teleperformance.com.

INVESTOR CALENDAR

Full-year 2015 results: February 25, 2016

ABOUT TELEPERFORMANCE GROUP

Teleperformance, the worldwide leader in outsourced multichannel customer experience management, serves companies around the world with customer care, technical support, customer acquisition and debt collection programs. In 2014, it reported consolidated revenue of €2,758 million ($3,665 million, based on €1 = $1.33).

The Group operates around 135,000 computerized workstations, with more than 182,000 employees across around 270 contact centers in 62 countries and serving more than 160 markets. It manages programs in 75 languages and dialects on behalf of major international companies operating in a wide variety of industries.

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: STOXX 600, SBF 120, Next 150,
CAC Mid 60 and CAC Support Services.
Symbol: RCF - ISIN: FR0000051807 - Reuters: ROCH.PA - Bloomberg: RCF FP

For more information: www.teleperformance.com
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Contacts

Teleperformance
INVESTOR RELATIONS AND PRESS
QUY NGUYEN-NGOC, Tel: +33 1 53 83 59 87
quy.nguyen@teleperformance.com

Contacts

Teleperformance
INVESTOR RELATIONS AND PRESS
QUY NGUYEN-NGOC, Tel: +33 1 53 83 59 87
quy.nguyen@teleperformance.com