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.
Exceptional trading continues
08 Nov 16
Keywords has announced that the strong trading in localisation and audio services has continued into H216. In particular, the Synthesis business acquired in April continues to benefit from exceptionally strong trading. Full-year results are now expected to be materially ahead of consensus and we upgrade our FY16e EPS by 13%. Erring on the side of caution, we have not changed our FY17 estimates significantly. Nevertheless, we believe the company does have a platform to sustain double-digit earnings growth, and hence medium-/long-term prospects for further share appreciation remain good.
Panmure Morning Note 02-12-16
02 Dec 16
Today James Halstead will be holding its 101st AGM. Trading during the first part of FY17 has been mixed, with some notable challenges. However, movements in FX (i.e. weak sterling) is boosting reported earnings, offsetting UK volume trends and pricing pressures. Whilst earnings are likely to be second half weighted, the picture is in-line with expectations and we are leaving our FY17 PBT estimates unchanged (£47.4m in FY17 vs £45.4m FY16).
06 Dec 16
600 Group* (SIXH): Interim results: order book showing signs of improvement (CORP) | Real Good Food* (RGD): Commodity volatility impacts numbers (CORP) | Minds + Machines* (MMX): .vip goes live in China (CORP | Imaginatik* (IMTK): Interims (CORP) | iomart* (IOM): Quality business as usual (CORP) | Fulcrum (FCRM): Upgrades continue (BUY)
02 Dec 16
On 30 September 2016, when the company announced its full year results, it reported that the UK business had seen a slow start to the year, with particular weakness in repair and renewal spending by the NHS as well as “reticence” in the education sector. However, with the UK only representing about a third of the business, this weakness was expected to be more than offset by the positive effect of a weakened sterling on its overseas business, given the benefits for competitiveness and margins.
06 Dec 16
Acal’s H117 results reflected the weaker demand that was previously flagged combined with positive FX trends. Design & Manufacturing (D&M) continues to grow as a proportion of total revenues and profits and management has raised its targets for this part of the business. The company continues to consider further acquisitions, recently increasing its debt facility to support its growth strategy. The outlook for FY17 is unchanged – based on H117 order inflow, H217 is expected to be stronger and we leave our earnings forecasts substantially unchanged.