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.
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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.
The tide is turning
20 Apr 17
Any investor worth their salt knows it is impossible to precisely call a bottom in a particular stock. For Gattaca, though, we believe this moment has now passed given the compelling valuation (6.9x EV/EBIT vs 9.8x sector average), attractive 9.8% unlevered cashflow yield and constructive secular trends supporting its specialist markets. Sure, Net Fee Income (NFI) like-for-likes (LFL) have fallen of late, yet equally there are now early indications that organic growth may soon turn positive.
Panmure Morning Note 26-04-2017
26 Apr 17
The interims highlighted the dilutive impact of equity raise in November 2016 with profit before tax growing by 9% yoy but EPS growing by just 5% yoy. At end-February, the cash balance had reached £15m, of which £5.5m is earmarked for the completion of the new factory. As the company remains cash generative, we expect the company to end fiscal 2017 with just under £13m of cash. We eagerly wait to see how this cash will be invested and drive returns.
N+1 Singer - Small-cap quantitative research - Growth style screen revamp and 10 focus stocks
06 Apr 17
We have reviewed the performance of our consistent growth screen since the previous refresh on 27 September 2016 and revamped the selection parameters to focus more on forecast sales and EPS growth going forward. In the period under review the consistent growth style screen outperformed the small-cap benchmark by c. 6% and underperformed the microcap index by a similar amount. Interestingly, although growth doesn’t always seem to be defensive as might be expected, however it appears right to buy growth on dips caused by or coincident with wider market volatility. In the new forecast growth screen we take a close look at 10 focus stocks. We will monitor performance and refresh it in three to four months time.
N+1 Singer - Trifast - FY17 results ahead of expectations
20 Apr 17
Trifast has provided a positive year end trading update, with good performances across all geographies. Results for FY17 are guided to be ahead of expectations, with year end net debt also lower than previously expected. FY18 has also started well, although management has reiterated slight caution regarding margins due to rising input costs. We anticipate increasing our PBT forecasts by a mid-single digit percentage, and also reducing our net debt estimates. We remain positive on prospects for Trifast and expect the share price to respond positively today.
N+1 Singer - Morning Song 25-04-2017
25 Apr 17
Carpetright (CPR LN) Tougher conditions leaves forecasts towards lower end of range | Centaur Media (CAU LN) Bigger steps | Elementis (ELM LN) Positive update confirms strengthening of demand | Rathbone Brothers (RAT LN) Facing the challenge to deliver growth | Vp (VP/ LN) Another niche Hire Station deal prompts 3% EPS upgrades