Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on TELEPERFORMANCE. We currently have 5 research reports from 1 professional analysts.
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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.
16 Jan 17
We take a look at the rankings of the various countries in Africa that have a significant exposure to mining. We take the Transparency International corruption rankings as our starting point and modify these for exceptional geology and for current UK government travel warnings. Ghana, Botswana and Namibia come out as our top three, with Eritrea, Kenya and Zimbabwe at the bottom of our rankings.
Small Cap Breakfast
17 Jan 17
Global Energy Development (GED.L) — To be renamed Nautilus Marine Services. Schedule 1 from developer and seller of hydrocarbons and related products. Reverse takeover. Raising $10.5m via a convertible. Expected 9 Feb. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.
N+1 Singer - St Ives - Downgrade
19 Jan 17
Marketing activation has been impacted by further decline in grocery retail impacting profit by c£5m. Strategic The Company is also taking this opportunity to revise its guidance for Strategic Marketing as its recovery pace is not running at the planned target rate. PBT falls from N1Se £31.9m to £25m. The Company expects dividend to be held based upon lowered guidance and the implied cash flow performance. There do not appear to be any covenant issues. Forecasts and TP under review and downgrade to Hold. We expect the shares to test the 100p level.
19 Jan 17
Aggregated Micro Power* (AMPH): Funding for first peaking power plant project (CORP) | The Mission Marketing Group* (TMMG): Positive trading update (CORP) | Cello (CLL): Increasingly backed by, and leveraging, technology (BUY) | 4imprint (FOUR): Growth backed by strong cash flow continues (BUY) | Allergy Therapeutics (AGY): Positive trading update and market share gains drive upgrades (BUY) | Shanta Gold (SHG): Q4 operating results (BUY) | Sound Energy (SOU): Tendrara extended well test result (BUY) | Revolution Bars (RBG): Price target increase (BUY)
Trading conditions difficult but acquisitions underpin growth
23 Jan 17
FY16 revenue will be £53.7m (FY15: £44.8m), in line with ZC estimate of £53.9m, showing growth of c. 20% yoy underpinned by the three acquisitions undertaken in the year. However, due to higher costs relating to the acquisitions and, to a lesser extent, gross margin pressure, PBT will be in the region of £7.0 to £7.2m equating to growth of between 5.5% and 8.0%. As a result, FY16 ZC profit forecast is reduced by 8.0% to £7.0m. The impact in FY18 and FY19 is muted by the announcement of a further acquisition leading to an increase in revenue estimates of 8.7% whilst profit estimates fall c.4.5% in each year, respectively. Despite the decrease in forecasts the PER multiple on FY17 earnings remains single digit at just 9.1x, against a distributor average of 15.8x. With commitment to the forecast dividend increase reiterated, Flowtech offers an above average yield of 4.1%
N+1 Singer - Northern lights - Shining prospects for 2017
16 Jan 17
As the birthplace of Stephenson, Armstrong and Swan, the North East of England has a proud history of industrial and technological innovation. Despite local economic challenges, the region’s industrial heritage lives on through continuing success in high end engineering and technology. The recent takeovers of private equity backed SMD (subsea robotics) and Nomad Digital (wi-fi on the railways) are testament to this. The North East has also emerged as a leader in genetics and genomics with an enviable life sciences and healthcare infrastructure. Against this backdrop, we expect the region to continue to throw up attractive IPO candidates to build on the six new listings in the past three years. We expect 2017 to be far kinder to the existing portfolio of North East plcs than 2016 (a year to forget) with recent management changes one important theme for the new year. Our top picks are Hargreaves Services, Quantum Pharma and Zytronic (all N+1 Singer Corporate clients) and we are Buyers of Northgate and Grainger.