Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on TELEPERFORMANCE. We currently have 6 research reports from 1 professional analysts.
Frequency of research reports
Research reports on
Accelerating its positions in the high-value specialised services
24 Jan 17
Holding its Investor Day at Palm Beach USA on 19 January 2017, Teleperformance set financial objectives for FY20e. The group’s target is to maintain its organic growth above the market average to achieve sales of €5bn on this horizon while simultaneously pursuing targeted acquisitions (mostly in high-value specialised activities) as there is further room for market consolidation (the top 10 operators representing c.30% of global outsourced market). The FY20e recurring EBITA margin goal is for at least 14% (compared with 10.3% in FY15), supported by an improving business-mix towards higher-value services.
Pursuing its strong business momentum
15 Nov 16
Teleperformance reported very strong and better than expected Q3 organic revenue growth of +9.7% (versus a rather demanding Q3 15 of +7%), with satisfactory trends across the board (English-speaking market & Asia-Pacific: +6.2%, Ibero-LatAm: +20.8%, Continental Europe & MEA: +6.7%). The reported Q3 revenues reached €910m (+€72m). For the 9 months period, organic performance amounted to +7.8% (9 months 2015 was +7.5%), slightly accelerating from H1 16’s +6.8%. The total reported revenue reached €2,599m as of end-September, up 4.1%, i.e. +€103m, after a €100m negative forex impact (mainly the LatAm currencies decrease versus the euro). The FY16e guidance was reiterated for organic revenue growth of “at least” +7%, with an unchanged target for a recurring operating margin of “at least” 10.3% at comparable perimeter (FY15 was 10.34%). It was specified that the recently-acquired LanguageLine Solutions LLC (consolidated from 19 September 2016) “will reinforce significantly this objective” (CFO Olivier Rigaudy specifying it would be “in the 11% region”). Note that a high level of net free cash flow was also reiterated for the full-year with efforts to be pursued in FY17e (focusing on working capital and capex, amongst other things).
Smartly reinforcing its global leadership
23 Aug 16
Teleperformance has just announced it is on its way to acquire the US market leader in over-the-phone and video interpretation solutions LanguageLine Solutions (LLS) for $1,522m (i.e. c.€1,350m). The transaction, made from ABRY Partners and minority equity owners, is expected to be closed before the year-end, subject to some regulatory approvals.
Growth accelerating in Q2 and a positive FY16e guidance
16 Aug 16
After a very satisfactory Q1 16 (+5.5% organic growth), Teleperformance’s consolidated revenues accelerated further over Q2 on an underlying basis (+8.2%) to reach +6.8% over H1. Reported revenue growth amounted to +1.8% (€1,689m, i.e. +€31m), impacted by a €77m negative forex impact (more than 2/3rds due to Latin American currencies’ weakness against the euro). Underlying EBITA margin slightly improved from 8.7% to 8.9%, despite security costs impacting for >50bp (c.50bp anticipated for FY16e and targeted to move in line with revenue growth as soon as next year). The FY16e guidance was revised upward for organic revenue growth with it now expected to be “around” +7% instead of “between +5% and +7%” but an unchanged target for the operating margin of “at least” 10.3% (FY15 was 10.34%), after a 19bp improvement in H1 (to 8.88%) on a recurring basis, driven by Iberico-LatAm and Continental Europe & MEA. A high level of net free cash flow was also reiterated for the full year (reported H1 16 net free cash flow up 16.3% to €121m).
Continuing strong momentum business
18 Nov 15
Teleperformance reported satisfactory figures for Q3, with organic revenue growth reaching +7% (versus a demanding Q3 14 of +12.8%). For the 9-month period, organic performance therefore amounted to +7.5% (€2,496m; 9 months 2014 was up 11.2%), slightly decelerating from H1 15's +7.8%. Reported revenue growth year-to-date reached +27.8% after a €225m positive perimeter impact (mainly Aegis USA, a small part coming from City Park Technologies) and a €159m positive forex impact (mainly the increase of the US$ and £ against the €). The FY15e guidance for organic revenue growth to be "at least" +7% (a positive as it is against a rather high 2014 basis of comparison of +9.9%; note that this implies at least a +5.5% trend in Q4 which seems highly achievable) was reiterated with an operating margin of "at least" 10.3% (AV at 10.4%) on a recurring basis (FY14: 9.7%). The group also confirmed it expects a sharp increase in FY15e net FCF (tight control of capex pursued), confirming its appetite for further acquisitions (likely in FY16e).
Solid H1 figures and guidance...well priced in
06 Aug 15
After very solid Q1 15 revenue figures (+10% organic growth), Teleperformance produced, as expected (i.e. higher basis of comparison as Q2 14 was up 11.6%), a lower Q2 organic growth but maintained a very satisfactory H1 performance (+7.8% organic). Reported revenue growth rose +33.2% (to €1,658m), benefiting from the Aegis USA integration (since early August 2014; largely responsible for the +€190m perimeter effect) as well as a positive €117m forex (mainly $ and £ increases versus the €). Note that management specified that the work of integrating Aegis is considered as completed now. The FY15e guidance was reiterated, i.e. organic revenue growth expected to be "at least" +7% (a positive as it is against a rather high 2014 basis of comparison of +9.9%) with an operating margin of "at least" 10.3% (AV at 10.4%), after a 60bp improvement in H1 (to 8.7%) on a recurring basis.
N+1 Singer - Morning Song 21-03-2017
21 Mar 17
accesso Technology (ACSO LN) Full year results in line, but key trading months still ahead | Augean (AUG LN) Double digit growth in ’16, good start to ‘17 | Earthport (EPO LN) Interims show continued top line strength | Goals Soccer Centres (GOAL LN) Good momentum under new team. It’s now all about delivery | IQE (IQE LN) FY’16 results prompt further upgrades | Microsaic Systems (MSYS LN) Challenges in 2016, strategy remains in place | mporium Group (MPM LN) Funds raised to help execute strategy | RhythmOne (RTHM LN) Dawn of the independents | ScS Group (SCS LN) Strong progress on key growth initiatives albeit comps now toughen | Sinclair Pharma (SPH LN) FY results: EBITDA ahead, Instalift™ gaining pace | Vectura Group (VEC LN) FY (9-month) results
N+1 Singer - Augean - Double digit growth in ’16, good start to ‘17
21 Mar 17
Augean reported another year of double digit growth for 2016, with profits in line with our forecasts. Sales grew by 21% excluding landfill tax, while adjusted PBT grew by 18% to £7.1m before amortisation of acquired intangibles. DPS was increased by 54% to 1.0p, 25% ahead of our estimate. The business units made further strategic progress, with revenues from their top 20 customers increasing from 42% to 43% of the total, of which 88% was under contract or a framework agreement, increasing forward visibility. There has been an encouraging start to 2017 and management is confident of delivering another year of profits growth. The shares trade on undemanding single digit multiples, offering good value.