First-quarter 2018 revenue

Transcription

1 PRESS RELEASE First-quarter 2018 revenue - Like-for-like revenue growth of + 6.7% - 24 th straight quarter of at least + 5% growth guidance confirmed PARIS, APRIL 24, 2018 Teleperformance, the worldwide leader in outsourced omnichannel customer experience management, today released its revenue for the first quarter of 2018 (period from January 1 to March 31, 2018). STRONG GROWTH IN LIKE-FOR-LIKE REVENUE Revenue: 1,026 million Like-for-like growth: + 6.7% Sustained growth in the Ibero-LATAM and Continental Europe, Middle East & Africa regions 2018 GUIDANCE CONFIRMED Like-for-like revenue growth above + 6% EBITA margin before non-recurring items of at least 13.5% Sustained strong net free cash flow generation CONSOLIDATED REVENUE millions As reported % change Like-for-like Average exchange rate 1 = US$ = US$1.06 First quarter 1,026 1, % + 6.7% Commenting on this performance, Teleperformance Chairman and Chief Executive Officer Daniel Julien said: The Teleperformance Group's revenue rose + 6.7% like-for-like in the first quarter of 2018, representing an above-budget performance and a promising start to the year. It also marked the 24 th straight quarter of at least + 5% organic growth, confirming our status as a growth company. The quarter saw sustained growth in our Core Services, especially in the Ibero-LATAM and Continental Europe, Middle East & Africa (CEMEA) regions, China and India, as well as in Specialized Services. We continue to diversify our business portfolio by nurturing our relationships with large multinationals in a wide range of expanding industries, with a focus on the new economy, especially e-tailing, consumer electronics, public services and fast-moving consumer goods. Based on this solid start to 2018, we are confident that we will achieve our targets for the year. Teleperformance has fantastic strengths on which it can draw to win new market share in an increasingly demanding environment for our businesses, shaped in particular by the new needs of the digital revolution and the growing demand for significantly enhanced data security. Innovation, the core driver of our profitable long-term growth, is a key focus as we work to develop the most effective omnichannel strategies combining talent management and appropriate use of automated systems. Teleperformance also has a solid balance sheet and cash flow performance that allows it to take advantage of the many remaining acquisition opportunities in the still highly fragmented customer experience and outsourced business process services market. External growth is another key value-creation driver for Teleperformance's shareholders and clients, he added. Note: The Alternative Performance Measures (APMs) are defined in the Appendix 1/5

2 CONSOLIDATED REVENUE Consolidated revenue amounted to 1,026 million in the first quarter of 2018, representing a year-on-year increase of + 6.7% on a like-for-like basis. Despite a high basis of comparison, this was the 24 th straight quarter of at least + 5% organic growth. On a reported basis, revenue was down 3.8%, reflecting a sharply negative 105 million currency effect that was mainly due to the US dollar s weakness against the euro and, to a lesser extent, to the declines of the Brazilian real and Colombian peso. REVENUE BY ACTIVITY Q % total Q % total % change millions Reported Like-for-like CORE SERVICES % % - 3.1% + 7.0% English-speaking market & Asia-Pacific % % % - 1.0% Ibero-LATAM % % + 1.0% % Continental Europe & MEA % % % % SPECIALIZED SERVICES % % - 7.7% + 5.0% TOTAL 1, % 1, % - 3.8% + 6.7% Core Services Core Services revenue amounted to 874 million in the first quarter of This represented a decline of 3.1% as reported, which was due to the negative currency effect resulting from sharp falls in the US dollar, Brazilian real and Colombian peso against the euro. On a like-for-like basis, revenue rose + 7.0%, sustained by dynamic performances in the Ibero-LATAM and CEMEA regions. - English-speaking market & Asia-Pacific Revenue in the English-speaking market & Asia-Pacific region amounted to 371 million in the first quarter of 2018, representing a year-on-year decline of 12.7% as reported, due to the US dollar s weakness against the euro. Excluding the currency effect, the like-for-like decline was just 1.0%. Over the quarter, Teleperformance continued to diversify its client portfolio in the region. The most dynamic client segments are e-tailing, consumer electronics, fast-moving consumer goods, the automotive industry and local community services. Good momentum in these sectors offset a weaker performance from telecommunications activities, particularly in the Philippines. In this way, over the period, the Group continued to reduce its dependence on pay-tv and other telecommunications segments, which now account for only around 20% of the regional revenue stream. In the Asia-Pacific region, revenue growth picked up nicely in the first quarter of 2018, after losing momentum in This performance was mainly by growth in China and India, in a wide range of expanding industries such as consumer electronics and e-tailing. In the United Kingdom, revenue stabilized in the first quarter of 2018 after falling in the previous year s in an uncertain and wait-and-see environment. The main UK growth drivers were financial services, utilities and e-tailing. However, momentum in these markets was offset by the decline in business in the telecommunications segment. Thanks to recent commercial successes, the projected return to growth across the whole region in the second half of the year looks set to be confirmed. Note: The Alternative Performance Measures (APMs) are defined in the Appendix 2/5

3 - Ibero-LATAM The Ibero-LATAM region contributed 274 million to consolidated revenue for the first quarter of Business continued to expand at a healthy rate, exceeding budget forecasts. Despite a very high basis of comparison, like-for-like growth came to %. Reported growth was limited to + 1.0% due to the negative currency effect related mainly to the fall in value of the US dollar, the Brazilian real and Colombian peso against the euro. The year got off to a very good start in Portugal, where business growth continued to be driven by the fast development of multilingual hubs serving major multinationals. In Spain, business momentum recovered in a variety of segments, including e-services, reflecting the success of the previous two years action plans and investments. The rapid ramp-up of operations in Peru, which the Group entered in 2017, also contributed to the region s strong revenue growth in the first quarter of The Group continues to benefit from the attractiveness of nearshore solutions in Mexico serving the US market and is expanding its presence in many different segments such as specialized retailing, food services, financial services and travel agencies. It is also leveraging the dynamic domestic market and the investments made in this country in recent years. Business in Brazil and Colombia held up well during the quarter on the back of an exceptional Business in Argentina remained on a positive trajectory. To support this growth, new sites were opened in 2017, not just in Peru but also in Spain and Portugal. - Continental Europe & MEA In the CEMEA region, revenue rose by % like-for-like and by % as reported in the first quarter of 2018, ending the period at 229 million. The negative currency effect resulted from declines against the euro of several of the region s other currencies, including the Egyptian pound, Turkish lira and Russian ruble. Business momentum remained strong in the region, in a favorable economic environment. The accelerating pace of growth observed in the second half of 2017 continued in the first quarter of 2018, reflecting dynamic commercial performances with global clients and fast-growing local market leaders in a wide range of sectors. Revenues generated by the Group s multilingual hubs in Greece and by operations in Egypt, Turkey and Eastern Europe (Russia, Poland and Romania) all rose sharply. Other growth drivers in the region included the resounding business recovery in Germany, where revenues include the contribution of a new site in Kosovo serving the German market, and in Sweden. Business in France should gradually return to lasting growth, with new contracts signed in the energy and e-services sectors among others. The fastest growing markets in the region are still consumer electronics, retailing, leisure and entertainment, financial services, travel agencies, transportation and fast-moving consumer goods. E-services accounted for a good number of the recently awarded contracts, especially in the retail segment. To support this growth, new sites were opened in 2017, not only in Kosovo but also in Russia, Turkey and Poland. Specialized Services Revenue came in at 152 million versus 165 million in the first quarter of The business grew by + 5.0% like-for-like, but contracted by 7.7% on a reported basis due to the negative currency effect resulting mainly from the US dollar s extreme weakness against the euro during the period. LanguageLine Solutions North American operations are a significant contributor to Specialized Services revenues. LanguageLine Solutions revenue growth slowed temporarily during the first quarter of 2018 compared with the same period of 2017, due to the negative calendar effect and a technical incident (rapidly resolved) that adversely affected the volume of billed services. The pace of growth should be back to normal in the coming quarters. TLScontact was the main driver of Specialized Services growth, led by the satisfactory increase in transaction volumes on every government contract and by sales of add-on services during the visa issuance process. The LanguageLine Solutions and TLScontact businesses account for around 80% of Specialized Services revenue. Note: The Alternative Performance Measures (APMs) are defined in the Appendix 3/5

4 OUTLOOK Teleperformance confirms its 2018 full-year, like-for-like revenue growth objective of more than + 6%. The Group also confirms its full-year target to achieve an EBITA margin before non-recurring items of at least 13.5%, and expects to sustainably generate robust cash flow. In addition, the Group confirms its 5-year revenue and margin objectives DISCLAIMER All forward-looking statements reflect 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 Registration Document, available at Teleperformance undertakes no obligation to publicly update or revise any of these forward-looking statements. CONFERENCE CALL WITH ANALYSTS AND INVESTORS Tuesday, April 24, 2018 at 6:15 PM CET Presentation materials will also be available from 6 p.m. (CET) at INVESTOR CALENDAR First-half 2018 results: July 26, 2018 Third-quarter 2018 revenue: November 12, 2018 ABOUT TELEPERFORMANCE Teleperformance (TEP ISIN: FR Reuters: ROCH.PA Bloomberg: TEP FP), the worldwide leader in outsourced omnichannel customer experience management, serves companies and administrations around the world, with customer care, technical support, customer acquisition (Core Services), as well as with online interpreting solutions, visa application management services, data analysis and debt collection programs (Specialized Services). In 2017, Teleperformance reported consolidated revenue of 4,180 million (US$4,720 million, based on 1 = $1.13). The Group operates 171,000 computerized workstations, with 223,000 employees across 350 contact centers in 76 countries and serving 160 markets. It manages programs in 265 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: CAC Large 60, CAC Next 20, CAC Support Services, STOXX 600, SBF 120, S&P Europe 350 and MSCI Global Standard. They also have been included in the Euronext Vigeo Eurozone 120 index since December 2015, with regard to the Group s performance in corporate responsibility. For more information: Follow us: INVESTOR RELATIONS PRESS RELATIONS QUY NGUYEN-NGOC SVETLANA SAVIN TELEPERFORMANCE Phone: / investor@teleperformance.com SIMON ZAKS IMAGE7 Phone: szaks@image7.fr Note: The Alternative Performance Measures (APMs) are defined in the Appendix 4/5

5 APPENDIX ALTERNATIVE PERFORMANCE MEASURES Change in like-for-like revenue: Change in revenue at constant exchange rates and scope of consolidation, corresponding to 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 Amortizations): 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 Amortizations): 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. Note: The Alternative Performance Measures (APMs) are defined in the Appendix 5/5