- Record +36.8% like-for-like revenue growth in first-half 2021
- Sharp increase in EBITA before non-recurring items and a margin
of 14.0%**, above pre-Covid levels - Net profit – Group share
quadrupled to €255 million - Net free cash flow up +73.4% to €333
million - Full-year 2021 targets for like-for-like* revenue growth
and operating margin raised
Regulatory News:
The Board of Directors of Teleperformance (Paris:TEP), a leading
global group in digitally integrated business services, met today
and reviewed the consolidated financial statements for the six
months ended June 30, 2021. The Group also announced its half-year
financial results.
Record growth in revenue and earnings
- Revenue: H1 2021: €3,431 million,
up +36.8% like-for-like*, up +29.0% as reported Q2 2021: €1,719 million, up +37.7% like-for-like*,
up +31.5% as reported
- EBITA before non-recurring items: €479 million, up +89.5% vs.
H1 2020 for a margin of 14.0% vs. 9.5% in H1 2020
- Net profit – Group share: €255 million, vs. €63 million in H1
2020
- Net free cash flow: €333 million, up +73.4% vs. H1 2020
Operating highlights and the Group’s agile, responsible
transformation
- Still accelerating market digitalization
- Consolidation of a hybrid business model thanks to the
deployment of the TP Cloud Campus platform – a remote,
cloud-based customer experience management solution – in 52
countries at end-June vs. 32 countries at end-2020, and nearly
240,000 employees working from home
- Significant growth in support services for government
vaccination campaigns in continental Europe and the United
Kingdom
- A strong commitment to employees, with operations in 60
countries representing more than 90% of the workforce now
certified as Best Employers; roll-out of vaccination
services for Group employees in India, the Philippines,
Colombia, the Dominican Republic and many other countries
Outlook: 2021 financial objectives raised
- Robust business development, particularly with leading digital
economy companies in e-tailing, logistics, social media and online
entertainment
- Like-for-like* full-year revenue growth of around +18%, versus
the previous target of at least +12%
- An EBITA margin before non-recurring items of more than 14.5%,
versus the previous target of at least 14.0%
- Acquisition of Health Advocate completed on June 22, 2021
*At constant scope of consolidation and exchange rates **EBITA
margin before non-recurring items
Commenting on this performance, Teleperformance Chairman and
Chief Executive Officer Daniel Julien said: “Teleperformance
set a new growth record in first-half 2021, with revenue up
+36.8% like-for-like. This excellent first-half performance
confirms the very positive trends in place since the second half of
2020 and far exceeds a simple return to pre-pandemic growth trends.
With an operating margin of 14%, exceeding pre-crisis levels, and a
more than +70% increase in cash flow generation, this growth was
profitable and helped to create value for all our partners,
reflecting the strength of our business model.
In particular, during the first six months of the year, we
benefited from the sustained strong pace of business
development, notably in continental Europe and in the
Ibero-LATAM region, where a large number of contracts were signed
with leading players in the digital economy. The Group was also
actively involved in support services for government vaccination
campaigns, mainly in the Netherlands and the United Kingdom.
Excluding these temporary support activities, and despite the
continuing negative effects on the visa management business and the
hospitality and tourism sectors, the Group’s like-for-like growth
remained at an exceptional level, surpassing +20%. Lastly, we
benefited from favorable prior-year comparatives, which were
impacted by the global health crisis that began in March 2020.
Our growth is also responsible with around 240,000
employees still working from home, creation of numerous jobs
around the world and progress in the development of ESG best
practices. This strong commitment to employees can be seen in the
Best Employer certifications earned by our operations in 60
countries, representing more than 90% of our total workforce. With
the pandemic still raging in many countries around the world, free
in-house vaccination programs have been deployed to ensure employee
safety, particularly in India, the Philippines, Colombia and the
Dominican Republic.
Based on this very good first half, and despite the expected
decline in the contribution from government health support services
as from the second half, we are raising our full-year targets,
to like-for-like revenue growth of around +18% and an operating
margin of more than 14.5%.
----------------------------------------
INTERIM FINANCIAL HIGHLIGHTS
€ millions
H1 2021
H1 2020
€1 = US$1.21
€1 = US$1.10
Revenue
3,431
2,660
Reported growth
+29.0%
+3.7%
Like-for-like growth
+36.8%
+5.0%
EBITDA before non-recurring
items
678
450
% of revenue
19.8%
16.9%
EBITA before non-recurring
items
479
253
% of revenue
14.0%
9.5%
EBIT
398
154
Net profit – Group share
255
63
Diluted earnings per share (€)
4.31
1.08
Net free cash flow
333
192
FIRST-HALF AND SECOND-QUARTER 2021 REVENUE
Consolidated revenue
Consolidated revenue came in at €3,431 million for the first
half of 2021, representing a year-on-year increase of +36.8% at
constant exchange rates and scope of consolidation (like-for-like)
and +29.0% as reported. The difference between reported and
like-for-like growth was due to an unfavorable currency effect
(-€153 million) stemming mainly from the decline against the euro
of the US dollar, the main Latin American currencies and the Indian
rupee.
These sharp gains in revenue, which far exceeded a simple return
to pre-pandemic growth trends, were primarily driven by continued
strong sales momentum in the Core Services & D.I.B.S. business,
in an environment shaped by faster development of the digital
economy. The deployment of Covid-19 support services for
governments also helped boost revenue. Adjusted for this item,
like-for-like growth nevertheless remained above +20%. Specialized
Services revenue also trended upwards over the period, led by
strong growth at LanguageLine Solutions and the emerging recovery
in the TLScontact visa application management business in the
second quarter. In every business, the basis of comparison was
favorable from March to May, the peak months of the global health
crisis in 2020.
Second-quarter 2021 revenue came in at €1,719 million, slightly
outpacing the first quarter’s +35.9% gain with a +37.7%
like-for-like increase year-on-year. This primarily reflected the
faster second-quarter growth in Specialized Services, which was led
by the upturn in TLScontact’s business, with a particularly
favorable basis of comparison over the quarter. Reported revenue
growth came to +31.5%, including the unfavorable currency effect
stemming from the decline against the euro in the US dollar and, to
a lesser extent than in the first quarter, the main Latin American
currencies and the Indian rupee.
Revenue by activity
H1 2021
H1 2020**
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
3,075
2,344
+38.7%
+31.2%
English-speaking & Asia-Pacific
(EWAP)
992
856
+23.7%
+15.9%
Ibero-LATAM
895
711
+35.4%
+25.9%
Continental Europe & MEA (CEMEA)**
977
583
+70.4%
+67.6%
India**
211
194
+17.2%
+8.8%
SPECIALIZED SERVICES
356
316
+22.5%
+12.7%
TOTAL
3,431
2,660
+36.8%
+29.0%
Q2 2021
Q2 2020**
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
1,539
1,165
+37.8%
+32.1%
English-speaking & Asia-Pacific
(EWAP)
484
425
+20.7%
+14.0%
Ibero-LATAM
454
355
+33.5%
+27.8%
Continental Europe & MEA (CEMEA)**
495
299
+68.1%
+65.7%
India**
106
86
+29.9%
+22.8%
SPECIALIZED SERVICES
180
142
+37.6%
+26.5%
TOTAL
1,719
1,307
+37.7%
+31.5%
* Digital Integrated Business Services ** 2020 data from the
CEMEA and India regions have been restated on a pro forma basis
following the integration into the CEMEA region on January 1, 2021
of former Intelenet activities in the Middle East, which were
previously included in the India & Middle East region (renamed
India since January 1, 2021)
- Core Services & Digital Integrated
Business Services (D.I.B.S.)
Core Services & D.I.B.S. revenue amounted to €3,075 million
in first-half 2021, a year-on-year like-for-like increase of +38.7%
that amply outperformed the market. Reported revenue growth came to
+31.2%, with the difference primarily reflecting the decline
against the euro of the US dollar and, to a lesser extent, the main
Latin American currencies and the Indian rupee.
In the second quarter, like-for-like revenue growth came to
+37.8%, as sustained strong business development in the CEMEA and
Ibero-LATAM regions was supported by the faster expansion of the
digital economy, particularly in the e-tailing and online
entertainment segments. The hospitality and tourism segments
returned to growth during the second quarter, while Covid-19
support services also continued to be deployed for governments,
particularly in the CEMEA and EWAP region.
- English-speaking & Asia-Pacific (EWAP)
In first-half 2021, revenue for the region came to €992 million,
up +23.7% like-for-like. The reported gain of +15.9% included an
unfavorable currency effect stemming primarily from the US dollar’s
decline against the euro. Like-for-like revenue growth in the
second quarter came to +20.7%.
Operations in the North American market reported satisfactory
like-for-like growth in the first half, with a faster gain in the
second quarter. Performance was led by the e-tailing, online
entertainment, automotive and consumer electronics segments. The
hospitality and tourism segments, which had been hard hit by the
health crisis, began to bottom out in June. Nevertheless, the pace
of recovery was dampened over the first half by the temporary labor
shortage in the US domestic labor market.
Business in the United Kingdom rose very quickly in the first
half, with the large-scale deployment of Covid-19 support services
for the government during the period. Delivery continued into the
second quarter, albeit at a slower pace than in the first, mainly
due to the less favorable comparatives since the services were
first rolled out in second-quarter 2020. Their declining
contribution is therefore expected and will have a significant
impact on the growth projected for the second half. Business in
other segments continued to benefit from the solid sales momentum,
particularly in consumer electronics and energy.
In Asia, business enjoyed another period of fast growth,
although comparatives were less favorable in the second quarter,
given that the health crisis began and ended earlier last year,
especially in China. Revenue gains in China were driven by contract
ramp-ups with global leaders in the consumer electronics and
e-tailing segments. The multilingual hubs in Malaysia continued to
post very strong gains, thanks mainly to the contribution from
recently signed contracts in the social media and online
entertainment segments.
First-half 2021 revenue for the Ibero-LATAM region amounted to
€895 million, a year-on-year increase of +35.4% like-for-like. On a
reported basis, growth came out at +25.9%, with the difference
primarily reflecting the decline against the euro of the Brazilian
real, the Colombian peso and the Argentinian peso.
Second-quarter revenue growth amounted to +33.5% like-for-like.
The region maintained a very strong pace of growth thanks to the
numerous contract wins with e-clients as they quickly and
effectively embraced the work-from-home model. As in most of the
other host regions, the impact of the health crisis on prior-year
comparatives means that growth in the second half, while still
sustained, should be slower than in the first six months.
Sharp gains were recorded in Colombia and by the Group’s
nearshore operations in Mexico, Dominican Republic and El Salvador.
Activities in Portugal and Spain also reported solid revenue
growth, led by the strong gains from their multilingual hubs
serving global market leaders in the digital economy.
The e-tailing, online entertainment, consumer electronics and
financial services segments were particularly dynamic, while the
travel and hospitality segments enjoyed a brisk upturn in business
beginning in May. Lastly, the online food services, automotive and
healthcare segments ramped up quickly in the second quarter.
- Continental Europe & MEA (CEMEA)
Revenue for the CEMEA region totaled €977 million in first-half
2021, representing year-on-year growth of +70.4% like-for-like.
Reported growth stood at +67.6%, primarily due to the decline in
the Turkish lira and Russian ruble against the euro.
Like-for-like growth in the second-quarter came to +68.1%,
maintaining the first quarter’s excellent trend.
Around two-thirds of the region’s first-half growth stemmed from
the sustained fast ramp-up during the period of support services
for government vaccination campaigns in the Netherlands and, to a
lesser extent, in France and Germany. Given the higher basis of
comparison in second-half 2020, particularly due to the start-up of
the “Covid contracts”, growth in second-half 2021 should be lower
than in first-half.
The remaining third of the region’s first-half 2021 growth was
led by the fast-expanding business with multinational clients,
particularly in the e-tailing and online entertainment segments.
This was the case in Greece (multilingual hubs), for the German-
and French-speaking markets, and in the Netherlands, Italy, Turkey
and Egypt. The hospitality and tourism segments bottomed out early
in the second quarter.
In the first half of 2021, operations in India generated €211
million in revenue, up +17.2% from the prior-year period on a
like-for-like basis and up +8.8% as reported. The difference was
due to the negative currency effect caused by the decline in the
Indian rupee against the euro.
In the second quarter, like-for-like revenue growth accelerated
sharply to +29.9% from +6.7% in the first three months. The basis
for comparison was particularly favorable in the region over the
second quarter, given the steep falloff in business at the peak of
the crisis last year. In addition, the country organization managed
to overcome the pandemic’s resurgence last April by stepping up
deployment of work-from-home solutions, which now apply to nearly
80% of the Indian workforce.
Offshore activities, which are the main source of regional
revenue and include high value-added solutions, as well as domestic
activities enjoyed solid growth over the period. The former
benefited in particular from the firm growth in the e-tailing,
consumer electronics, food services and healthcare segments, and
the latter from contract ramp-ups in the e-retailing and energy
segments.
Given the 2020 comparatives impacted by the health crisis, which
were less favorable in second-half 2020, second-half 2021 growth
should be lower than in the first six months.
Revenue from Specialized Services stood at €356 million in the
first six months of 2021, a year-on-year increase of +22.5%
like-for-like and of +12.7% as reported, due to the decline in the
US dollar against the euro. In the second quarter, like-for-like
revenue growth accelerated sharply to +37.6% compared with +10.1%
in the first three months.
After falling precipitously in the first quarter due to ongoing
travel restrictions and border closures, TLScontact revenue has
turned slightly upwards since April, led by the still modest
recovery in international travel and a more favorable basis of
comparison. A sharper upturn in revenue is not expected to occur
until the second half of 2021, and its magnitude will depend on how
the health crisis evolves.
LanguageLine Solutions, the activity’s primary contributor and
business growth driver, continued to advance at a brisk pace during
the second quarter, maintaining the first quarter’s very solid
performance. The company was able to respond effectively to strong
demand, thanks to its offering based on 13,700 interpreters who
work from home. It also benefited from favorable comparatives in
March, when prior-year business slowed temporarily due to the
impact of Covid-19 on the healthcare segment.
Following completion of its acquisition in late June, Health
Advocate has been fully consolidated as part of the Specialized
Services business portfolio since July 1, 2021.
The debt collection business in North America recorded solid
revenue growth in the second quarter, still buoyed by a strong
sales dynamic during the health crisis.
FIRST-HALF 2021 RESULTS
EBITDA before non-recurring items stood at €678 million for
first-half 2021, up +50.6% from the prior-year period.
EBITA before non-recurring items rose by +89.5% to €479 million
from €253 million in the prior-year period. EBITA margin before
non-recurring items rose to 14.0%, from 9.5% in first-half 2020,
reflecting the return to higher than pre-crisis margins (12.8% in
first-half 2019). This was led by the powerful operating leverage
exerted by the very fast growth in revenue, the non-recurrence of
health crisis management outlays committed in first-half 2020, and
disciplined cost management. By activity and region, margins rose
fastest in the CEMEA and India regions, impelled in the former by a
significant, efficient contribution from government support
services and in the latter by (i) the program to terminate
low-margin contracts completed in late 2020; and (ii) the very
favorable comparison with the prior-year period, when the
beginnings of the health crisis had a particularly disruptive
impact on the organization of the Group’s workforce in India.
Earnings by activity
EBITA before non-recurring
items
H1 2021
H1 2020**
€ millions
CORE SERVICES & D.I.B.S.*
374
171
% of revenue
12.2%
7.3%
English-speaking & Asia-Pacific
(EWAP)
57
44
% of revenue
5.7%
5.1%
Ibero-LATAM
113
62
% of revenue
12.7%
8.7%
Continental Europe & MEA (CEMEA)**
138
23
% of revenue
14.1%
3.9%
India**
35
17
% of revenue
16.7%
8.5%
Holding companies
31
25
SPECIALIZED SERVICES
105
82
% of revenue
29.4%
26.1%
TOTAL
479
253
% of revenue
14.0%
9.5%
* Digital Integrated Business Services ** 2020 data from the
CEMEA and India regions have been restated on a pro forma basis
following the integration into the CEMEA region on January 1, 2021
of former Intelenet activities in the Middle East, which were
previously included in the India & Middle East region (renamed
India since January 1, 2021)
For Core Services & D.I.B.S., EBITA before non-recurring
items came to €374 million in the first half of 2021, versus €171
million in the first half of 2020. Margin improved sharply over the
period, to 12.2% from 7.3% a year earlier, and now exceeds
pre-crisis levels.
This solid performance primarily resulted from a favorable
first-half basis of comparison, the operating leverage exerted by
the fast growth in revenue, particularly in the Ibero-LATAM, CEMEA
and India regions, and the activity’s strict cost management
discipline.
- English-speaking & Asia-Pacific (EWAP)
The EWAP region generated EBITA before non-recurring items of
€57 million in first-half 2021, compared with €44 million in the
prior-year period, while the margin came to 5.7% versus 5.1% the
year before.
In the United States, margins on domestic activities were
impacted by the temporary labor market disruptions in the wake of
the health crisis, while in the Philippines, offshore activities
saw profitability improve over the period.
Results in the United Kingdom rose significantly on the
sustained growth in Covid-19 support services and the ramp-up of
many new contracts.
In the Asia-Pacific region, margins continued to improve thanks
to strong business growth in China and Malaysia.
EBITA before non-recurring items in the Ibero-LATAM region rose
to €113 million in first-half 2021, from €62 million in the
prior-year period, while EBITA margin stood at 12.7%, versus 8.7%
in 2020.
Margin gains in the region were supported by the fast growth in
business. Among the top contributors to this solid performance were
Spain, Mexico, Portugal and the nearshore activities in El
Salvador.
- Continental Europe & MEA (CEMEA)
In first-half 2021, EBITA before non-recurring items in the
Continental Europe & MEA region came to €138 million yielding a
margin of 14.1%, versus respectively €23 million and 3.9% in the
prior-year period.
The broad-based, rapid deployment of Covid-19 support services
in the Netherlands, France and Germany contributed to the robust
improvement in margins. The performance was also led by fast growth
in the multilingual operations in Greece and the nearshore
activities in Albania serving the Italian market.
EBITA before non-recurring items in India rose to €35 million in
first-half 2021, from €17 million in the prior-year period, feeding
through to a margin of 16.7% versus 8.5% in first half 2020.
The EBITA margin improvement was mainly attributable to the
sustained growth in business over the period and the very favorable
comparison with first-half 2020, when the emergence of the health
crisis in a complex environment disrupted the organization of the
Group’s local workforce and cost structure.
The first-half recovery in margins on domestic activities also
reflected the completion, in late 2020, of the program to terminate
lower margin contracts. In addition, the country organization was
able to effectively manage the second peak of the health crisis
last April by deploying a new round of work-from-home solutions
focused on the most profitable offshore activities.
Specialized Services reported EBITA before non-recurring items
of €105 million and a margin of 29.4% in first-half 2021, versus
26.1% the year before.
TLScontact’s margin narrowed over the first quarter, reflecting
the very unfavorable basis of comparison, given that travel
restrictions and border closures did not come into effect until
March 2020. It leveled off in April 2021, with the slight uptick in
business and the gains from the rapid implementation of
cost-cutting measures last year. The Group’s objective is for the
subsidiary to break even over the full year.
LanguageLine Solutions’ already high margin continued to improve
over the first half, lifted by the strong growth in business and
the efficiency of its business model, based on entirely home-based
interpreters, unrivaled technological tools and a very assertive
business development process.
Other income statement items
EBIT amounted to €398 million for the period, versus €154
million in first-half 2020. It included in particular:
• €49 million in amortization of intangible assets related to
acquisitions;
• €31 million in accounting expenses relating to performance
share plans.
The financial result represented a net expense of €44 million,
versus €50 million in first-half 2020.
Income tax expense amounted to €99 million, corresponding to an
effective tax rate of 28.1%, versus 39.5% in the prior-year
period.
Net profit – Group share totaled €255 million, versus €63
million in the year-earlier period, while diluted earnings per
share came to €4.31, versus €1.08 in first-half 2020.
Cash flows and financial structure
Net free cash flow after lease expenses, interest and tax paid
amounted to €333 million, versus €192 million the year before,
representing an increase of +73.4%.
The change in consolidated working capital requirement was an
outflow of €38 million in first-half 2021, compared with an inflow
of €80 million in first-half 2020.
Net capital expenditure amounted to €98 million, or 2.9% of
revenue, versus €120 million and 4.5% in first-half 2020. The
decline reflected the high take-up of home-based working solutions
during the health crisis and the low number of new facility
openings.
After the payment of €141 million in dividends and the €573
million in financing for the Health Advocate acquisition, net debt
stood at €2,613 million as of June 30, 2021.
OPERATING HIGHLIGHTS
- Expansion of the global footprint and
deployment of work-from-home solutions
In the first half of 2021, Teleperformance continued to deploy
its strategy of expanding worldwide as the health crisis gradually,
yet tentatively, receded. Except for opening three new facilities
in Turkey, Colombia and India that added around 1,500 workstations,
the Group primarily focused on reorganizing existing facilities and
broadening its portfolio of work-from-home solutions.
- 240,000 employees still working from home
around the world, compared to fewer than 10,000 before the health
crisis.
- Rapid worldwide deployment of TP Cloud
Campus (TPCC), an integrated cloud-based solution for remotely
managing the customer experience, for the benefit of employees and
management. It is now used in 52 countries, compared with 32 at
year-end 2020.
TPCC is the next-generation, integrated version of traditional
telecommuting. It serves as a global standard of excellence,
ensuring consistency across all of the Group’s remote operations
worldwide. The many features available include: virtual talent
recruitment, training, development, coaching, team building,
customer interactions, quality control, management and an
environment conducive to wellness and a rewarding social life for
employees. The value proposition for clients is based on effective
support to ensure business continuity, improved service, enhanced
data security, unparalleled global flexibility and the ability to
interact at any time with dedicated Teleperformance teams.
- Best Employer certifications: 60
country organizations certified
Teleperformance has made the well-being of its employees a key
priority worldwide. As of June 30, 2021, the Group had been
certified in 60 countries as a “Best Employer” by independent
experts like Great Place to Work. These certifications cover more
than 90% of the Group’s global workforce, versus 87% as of end 2020
(26 country organizations certified) and 70% at year-end 2019 (22
country organizations certified).
Country organizations certified by activity and
region:
- 10 country organizations certified in the
EWAP region: Canada, Philippines, United Kingdom, United States,
China, Indonesia, Japan, Malaysia, Singapore and Thailand
- 29 country organizations certified in the
CEMEA region: Albania, Bosnia and Herzegovina, Czech Republic,
Denmark, Egypt, Finland, France, Germany, Greece, Italy, Kosovo,
Lithuania, Madagascar, Morocco, Netherlands, Nigeria, Northern
Macedonia, Poland, Romania, Russia, Saudi Arabia, Suriname, Sweden,
Switzerland, Togo, Turkey, Tunisia, Ukraine and UAE.
- 15 country organizations certified in the
Ibero-LATAM region: Argentina, Brazil, Chile, Colombia, Costa Rica,
Dominican Republic, El Salvador, Guatemala, Guyana, Honduras,
Mexico, Nicaragua, Peru, Portugal and Spain
- Domestic and offshore operations certified
in India
- 25 country organizations certified for
Specialized Services, of which 5 dedicated to these activities:
Algeria, Belarus, Ghana, Kenya and Lebanon.
- Health Advocate acquisition
completed
In June 2021, Teleperformance completed the acquisition of
US-based Health Advocate, a leader in consumer health management
business services and digital solutions integration.
The acquisition strengthens Teleperformance’s Specialized
Services business portfolio and its leadership in high-end
value-added solutions. It also consolidates the Group’s positioning
in the high-potential US healthcare market, where it already has a
solid footprint in customer experience management and the online
interpreting solutions delivered by LanguageLine Solutions.
Founded in 2001 and headquartered in Plymouth Meeting,
Pennsylvania, Health Advocate generated, at the time the
acquisition was announced in late 2020, revenue of $140 million and
adjusted EBITDA of $50 million, representing a margin of 36%.
Health Advocate has been fully consolidated since July 1,
2021.
OUTLOOK
Based on the very solid performance delivered in the first half,
Teleperformance has raised its full-year 2021 guidance to:
- Like-for-like full-year revenue growth of around +18%, versus
the previous growth target of at least +12%.
- An EBITA margin before non-recurring items of more than +14.5%,
versus the previous target of at least +14.0%.
In the second half of the year, the Group’s performance will
continue to benefit from its very dynamic business development and
the sustained acceleration in its digital transformation. Note,
however, that prior-year comparatives will turn less favorable, due
to the fast growth in business throughout the second half of 2020,
while the expected revenue from government support services in the
Netherlands and the United Kingdom will likely be lower.
-----------------------
Disclaimer
All forward-looking statements are based on 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 Universal Registration Document, available at
www.teleperformance.com. Teleperformance undertakes no obligation
to publicly update or revise any of these forward-looking
statements.
Webcast / Conference call with analysts and investors
A conference call and webcast will be held today at 6:00 PM
CEST. The webcast will be available live or for delayed viewing at:
https://channel.royalcast.com/landingpage/teleperformance/20210728_1/
The half-year financial report and presentation materials will
be available after the conference call on Teleperformance’s website
(www.teleperformance.com) – section Investor Relations / Press
releases and documentation / Annual and half-yearly financial
information, and by clicking on the following link:
https://www.teleperformanceinvestorrelations.com/en-us/press-releases-and-documentation/annual-and-half-yearly-financial-information
Indicative investor calendar Third-quarter 2021 revenue:
November 3, 2021
About Teleperformance Group
Teleperformance (TEP – ISIN: FR0000051807 – Reuters: TEPRF.PA
- Bloomberg: TEP FP), leading global group in digitally integrated
business services, serves as a strategic partner to the world’s
largest companies in many industries. It offers a One Office
support services model combining three wide, high-value solution
families: customer experience management, back-office services and
business process knowledge services. These end-to-end digital
solutions guarantee successful customer interaction and optimized
business processes, anchored in a unique, comprehensive high tech,
high touch approach. The Group's 380,000+ employees, based in 83
countries, support billions of connections every year in over 265
languages and over 170 markets, in a shared commitment to
excellence as part of the “Simpler, Faster, Safer” process. This
mission is supported by the use of reliable, flexible, intelligent
technological solutions and compliance with the industry’s highest
security and quality standards, based on Corporate Social
Responsibility excellence. In 2020, Teleperformance reported
consolidated revenue of €5,732 million (US$6.5 billion, based on €1
= $1.14) and net profit of €324 million.
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 40, CAC
Support Services, STOXX 600, S&P Europe 350 and MSCI Global
Standard. In the area of corporate social responsibility,
Teleperformance shares are included in the CAC 40 ESG index, the
Euronext Vigeo Eurozone 120 index, the FTSE4Good index and the
Solactive Europe Corporate Social Responsibility index (formerly
Ethibel Sustainability Excellence Europe index).
For more information: www.teleperformance.com Follow us on
Twitter: @teleperformance
Appendices
Appendix 1 - Quarterly and Half-Yearly Revenue by
Activity
H1 2021
H1 2020**
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
3,075
2,344
+38.7%
+31.2%
English-speaking & Asia-Pacific
(EWAP)
977
856
+23.7%
+15.9%
Ibero-LATAM
895
711
+35.4%
+25.9%
Continental Europe & MEA (CEMEA)**
992
583
+70.4%
+67.6%
India**
211
194
+17.2%
+8.8%
SPECIALIZED SERVICES
356
316
+22.5%
+12.7%
TOTAL
3,431
2,660
+36.8%
+29.0%
Q2 2021
Q2 2020**
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
1,539
1,165
+37.8%
+32.1%
English-speaking & Asia-Pacific
(EWAP)
484
425
+20.7%
+14.0%
Ibero-LATAM
454
355
+33.5%
+27.8%
Continental Europe & MEA (CEMEA)**
495
299
+68.1%
+65.7%
India**
106
86
+29.9%
+22.8%
SPECIALIZED SERVICES
180
142
+37.6%
+26.5%
TOTAL
1,719
1,307
+37.7%
+31.5%
Q1 2021
Q1 2020**
% change
€ millions
Like-for-like
Reported
CORE SERVICES & D.I.B.S.*
1,536
1,179
+39.7%
+30.3%
English-speaking & Asia-Pacific
(EWAP)
508
431
+26.6%
+17.7%
Ibero-LATAM
442
356
+37.4%
+24.1%
Continental Europe & MEA (CEMEA)**
481
284
+72.8%
+69.5%
India**
105
108
+6.7%
-2.5%
SPECIALIZED SERVICES
176
173
+10.1%
+1.4%
TOTAL
1,712
1,352
+35.9%
+26.6%
* Digital Integrated Business Services ** 2020 data from the
CEMEA and India regions have been restated on a pro forma basis
following the integration into the CEMEA region on January 1, 2021
of former Intelenet activities in the Middle East, which were
previously included in the India & Middle East region (renamed
India since January 1, 2021)
Appendix 2 – Simplified Consolidated Financial Statements
Consolidated income statement € millions
1st HY 2021 1st HY 2020
Revenues
3 431
2 660
Other revenues
3
5
Personnel
-2 363
-1 831
External expenses
-380
-372
Taxes other than income taxes
-13
-12
Depreciation and amortization
-108
-101
Amortization of intangible assets acquired as part of a business
combination
-49
-54
Depreciation of right-of-use assets (personnel-related)
-6
-6
Depreciation of right-of-use assets
-85
-91
Impairment loss on goodwill
0
-34
Share-based payments
-31
-10
Other operating income and expenses
-1
Operating profit
398
154
Income from cash and cash equivalents
3
2
Gross financing costs
-27
-22
Interest on lease liabilities
-20
-23
Net financing costs
-44
-43
Other financial income and expenses
0
-7
Financial result
-44
-50
Profit before taxes
354
104
Income tax
-99
-41
Net profit
255
63
Net profit - Group share
255
63
Net profit attributable to non-controlling interests
Earnings per share (in euros)
4,34
1,08
Diluted earnings per share (in euros)
4,31
1,08
Consolidated balance sheet € millions
ASSETS 06/30/2021 12/31/2020
Non-current assets Goodwill
2 736
2 106
Other intangible assets
935
951
Right-of-use assets
590
620
Property, plant and equipment
556
569
Financial assets
58
53
Deferred tax assets
59
45
Total non-current assets
4 934
4 344
Current assets Current income tax receivable
109
105
Accounts receivable - Trade
1 460
1 307
Other current assets
241
197
Other financial assets
52
75
Cash and cash equivalents
851
996
Total current assets
2 713
2 680
TOTAL ASSETS
7 647
7 024
EQUITY AND LIABILITIES 06/30/2021 12/31/2020
Equity Share capital
147
147
Share premium
575
575
Translation reserve
-278
-386
Other reserves
2 200
2 073
Equity attributable to owners of the Company
2 644
2 409
Non-controlling interests
0
0
Total equity
2 644
2 409
Non-current liabilities Post-employment benefits
32
30
Lease liabilities
484
512
Other financial liabilities
2 456
2 196
Deferred tax liabilities
228
236
Total non-current liabilities
3 200
2 974
Current liabilities Provisions
75
63
Current income tax
163
114
Accounts payable - Trade
276
227
Other current liabilities
765
675
Lease liabilities
162
162
Other financial liabilities
362
400
Total current liabilities
1 803
1 641
TOTAL EQUITY AND LIABILITIES
7 647
7 024
Consolidated cash flow statement € millions
Cash flows from operating activities 1st HY 2021 1st HY 2020
Net profit - Group share
255
63
Income tax expense
99
41
Net financial interest expense
19
16
Interest expense on lease liabilities
20
23
Non-cash items of income and expense
275
280
Income tax paid
-73
-62
Internally generated funds from operations
595
361
Change in working capital requirements
-38
80
Net cash flow from operating activities
557
441
Cash flows from investing activities
Acquisition of intangible assets and property,
plant and equipment
-100
-120
Acquisition of subsidiaries, net of cash acquired
-573
Proceeds from disposals of intangible assets and property,
plant and equipment
2
Net cash flow from investing activities
-671
-120
Cash flows from financing activities
Acquisition net of disposal of treasury shares
4
3
Dividends paid to parent company shareholders
-141
Financial interest paid
-15
-15
Lease payments
-111
-114
Increase in financial liabilities
608
574
Repayment of financial liabilities
-383
-530
Net cash flow from financing activities
-38
-82
Change in cash and cash equivalents
-152
239
Effect of exchange rates on cash held
10
22
Net cash at January 1st
993
409
Net cash at June 30th
851
670
Appendix 3 – Glossary - Alternative Performance
Measures
Change in like-for-like revenue: Change in revenue at
constant exchange rates and scope of consolidation = [current year
revenue - last year revenue at current year rates - revenue from
acquisitions at current year rates] / last year revenue at current
year rates.
H1 2020 revenue
2,660
Currency effect
-153
H1 2019 revenue at constant exchange
rates
2,507
Like-for-like growth
924
Change in scope
-
H1 2021 revenue
3,431
EBITDA before non recurring items or current EBITDA (Earnings
before Interest, Taxes, Depreciation and Amortizations):
Operating profit before depreciation & amortization,
depreciation of right-of-use of leased assets, amortization of
intangible assets acquired as part of a business combination,
goodwill impairment charges and non-recurring items.
H1 2021
H1 2020
Operating profit
398
154
Depreciation and amortization
108
101
Depreciation of right-of-use of leased
assets
85
91
Depreciation of right-of-use of leased
assets – personnel related
6
6
Amortization of intangible assets acquired
as part of a business combination
49
54
Goodwill impairment
-
34
Share-based payments
31
10
Other operating income and expenses
1
-
EBITDA before non-recurring
items
678
450
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.
H1 2021
H1 2020
Operating profit
398
154
Amortization of intangible assets acquired
as part of a business combination
49
54
Goodwill impairment
-
34
Share-based payments
31
10
Other operating income and expenses
1
-
EBITA before non-recurring
items
479
253
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 - lease payments - financial income/expenses.
H1 2021
H1 2020
Net cash flow from operating
activities
557
441
Acquisition of intangible assets and
property, plant and equipment
-100
-120
Proceeds from disposals of intangible
assets and property, plant and equipment
2
0
Lease payments
-111
-114
Financial interest paid
-15
-15
Net cash flow from financing
activities
333
192
Net debt: Current and non-current financial liabilities -
cash and cash equivalents
06/30/2021
12/31/2020
Non-current liabilities*
Financial liabilities
2 456
2 196
Current liabilities*
Financial liabilities
362
400
Lease liabilities (IFRS 16)
646
674
Cash and cash equivalents
-851
-996
Net debt
2 613
2 274
* Excluding lease liabilities
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.
NB: The alternative performance
measures (APMs) are defined in Appendix 3
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version on businesswire.com: https://www.businesswire.com/news/home/20210728005646/en/
FINANCIAL ANALYSTS AND INVESTORS Investor relations and
financial communication department TELEPERFORMANCE Tel: +33 1 53 83
59 15 investor@teleperformance.com
PRESS RELATIONS Europe Laurent Poinsot – Karine
Allouis IMAGE7 Tel: +33 1 53 70 74 70 teleperformance@image7.fr
PRESS RELATIONS Americas and Asia-Pacific Mark
Pfeiffer TELEPERFORMANCE Tel: + 1 801-257-5811
mark.pfeiffer@teleperformance.com
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