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    TEP   FR0000051807

TELEPERFORMANCE SE

(TEP)
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Teleperformance : 2020 Annual Results – Press release – February 25, 2021

02/25/2021 | 11:51am EST

PRESS RELEASE

2020: record growth despite the impact of the Covid-19 crisis 2021: continued organic growth well above the market average

  • Sustained like-for-like* growth for the full year: +11.6%

  • Sharp acceleration in like-for-like growth in the fourth quarter: +23.3%

  • Return to pre-Covid (H2 2019) level of EBITA margin in the second half: 15.7%

  • Rapid response to the crisis and a return to sustained growth since June, driven by faster development of the digital economy and the Group's strong sales momentum

  • Recommended dividend of €2.40 per share, unchanged from the previous year

  • 2021 objectives: like-for-like growth of at least +9.0%* and an EBITA margin before non-recurring items of more than 14.0%

  • Confirmation of the 2022 objective of further rapid growth in revenue and margins

PARIS, February 25, 2021 - The Board of Directors of Teleperformance, a leading global group in digitally integrated business services, met today and reviewed the consolidated and parent company financial statements for the year ended December 31, 2020. The Group also announced its financial results for the year.

Highly resilient financial results in 2020

Agile transformation to overcome the global health crisis and speed up growth

  • Three priorities met to overcome the health crisis: employee health, business health and cash health

  • Net creation of 50,000 jobs during the year

  • A strong commitment to employees, particularly during the crisis, with 28 countries achieving "top employer" certifications, representing 87% of the Group's workforce at year-end

  • More than 250,000 Teleperformance employees working from home at end-December 2020, versus less than 10,000 before the health crisis.

  • Rapid worldwide deployment of TP Cloud Campus, an integrated cloud-based solution for managing the customer experience remotely, for the benefit of teams and management; the solution is now implemented in 32 countries.

  • Strong sales momentum supported by a highly digitalized environment: 26% of revenue was generated from digital economy companies, versus 21% in 2019

2021 financial objectives

  • Like-for-like growth of at least +9.0%

  • EBITA margin before non-recurring items of more than 14.0%

  • Integration of Health Advocate expected during the second quarter

2022 financial objectives confirmed

  • Revenue of around €7 billion, including acquisitions in high-value services

  • EBITA margin before non-recurring items of around 14.5%

Revenue:

€5,732 million, up +11.6% like-for-like*, up +7.0% as reported

up +23.3% like-for-like* in fourth-quarter 2020

EBITA before non-recurring items:

€735 million, for a margin of 12.8%

Margin of 15.7% for H2 2020, the same as the pre-Covid margin in H2 2019

Net profit - Group share:

€324 million

Net free cash flow:

487 million, up +52% vs. 2019

Dividend per share:

€2.40**, unchanged from 2019

* At constant exchange rates and scope of consolidation ** Subject to shareholder approval at the next Annual General Meeting, to be held on April 22, 2021

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The reader is invited to verify authenticity of press releases by Teleperformance with the CertiDox app. More information on www.certidox.com

NB:

The Alternative Performance Measures (APMs) are defined in Appendix 3

1/17

Teleperformance SE (Societas Europaea). Share capital of €146,826,500. 301 292 702 RCS Paris.

21-25 rue Balzac, 75406 Paris Cedex 08 France. Siret 301 292 702 00059. Code APE 6420Z.

FINANCIAL HIGHLIGHTS

€ millions

2020

2019

% change

€1=US$1.14

€1=US$1.12

Revenue

Like-for-like growth

5,732

5,355

+7.0% +11.6%

EBITDA before non-recurring items % of revenue

1,128 19.7%

1,138 21.2%

EBITA before non-recurring items % of revenue

735 12.8%

764 14.3%

EBIT

Net profit - Group share

Diluted earnings per share (€)

Dividend per share (€)

555 324 5.52 2.40*

621 400 6.81 2.40

Net free cash flow

487

321

* Subject to shareholder approval at the next Annual General Meeting, to be held on April 22, 2021

Commenting on this performance, Teleperformance Chairman and Chief Executive Officer Daniel Julien said: "The past year has enabled Teleperformance to set new growth records while demonstrating the resilience and the strength of its business model as well as the agility of its organization in 83 countries, despite the uncertain and unprecedented environment caused by the global health crisis.

Like-for-like growth of nearly +12% for the year after a sharp acceleration in the fourth quarter to +23%, more than 250,000 people now working from home and the record number of countries certified as 'Top employers', covering 87% of our global workforce, all attest that we've achieved our objectives and successfully tackled challenges to overcome the Covid-19 crisis. In short, we have protected our employees' health, developed business with our clients and maintained the Group's financial strength. We have also pursued our acquisitions-led growth strategy in high-value services, announcing the acquisition of Health Advocate, a US-based healthcare cost management company.

With revenue close to €6 billion for the year, we consolidated our global leadership in outsourced omnichannel customer experience management in an increasingly digital environment.

The digital transformation and the constant quest for excellence in high-tech, high-touch strategy continue to underpin our value creation model. We're rapidly deploying TP Cloud Campus, our integrated solution for managing the customer experience remotely. And we're continuing to invest in priority areas such as cybersecurity and employee health, as illustrated by our recent commitment to supporting Group employees worldwide with their Covid-19 vaccinations. Delivering an enhanced, more personalized customer experience that is 'simpler, safer, faster' is central to our vision. Maintaining our status as a Top employer and taking action to support diversity and environmental responsibility are among our priorities. New, ambitious and results-oriented targets have therefore been set this year.

In 2021, we remain committed to our strategy of growth and progress for all our stakeholders. Thanks to Teleperformance's dynamic business development and accelerated transformation, we expect to continue growing our revenue by at least +9.0% like-for-like, while also widening our margins, creating jobs and deepening our commitment to corporate social responsibility.

We're also maintaining our financial targets for 2022, confident in our ability to continue delivering effective solutions to meet our clients' ever-changing needs and our employees' aspirations. Their many messages of gratitude for our assistance in overcoming the crisis are the best reward and the ultimate incentive to continue achieving our goals."

---------------------------------------------------------------------------------------------------------------------------------------------

NB:

The Alternative Performance Measures (APMs) are defined in Appendix 3

Teleperformance SE (Societas Europaea). Share capital of €146,826,500. 301 292 702 RCS Paris.

21-25 rue Balzac, 75406 Paris Cedex 08 France. Siret 301 292 702 00059. Code APE 6420Z.

2020 REVENUE

CONSOLIDATED REVENUE

Revenue amounted to €5,732 million for the year ended December 31, 2020, representing a year-on-year increase of +11.6% at constant exchange rates and scope of consolidation (like-for-like) and of +7.0% as reported. The unfavorable currency effect (-€217 million) primarily stemmed from the decline against the euro of the main Latin American currencies, the Indian rupee and, in the second half, the US dollar.

In 2020, like-for-like growth was driven by strong gains in the Core Services & D.I.B.S. business (+14.2%). Specialized

Services revenue was down -5.4%, due to the virtual standstill in TLScontact's visa application management business since the start of the health crisis, and despite strong revenue growth at LanguageLine Solutions.

Fourth-quarter 2020 revenue came in at €1,644 million, a year-on-year increase of +23.3% on a like-for-like basis.

After a solid first half despite the full impact of Covid-19 between mid-March and end-May, the upturn in growth initiated in June gradually strengthened over the second half of the year. The sharp acceleration in the fourth quarter was notably led by Continental Europe & MEA (CEMEA), while the Ibero-LATAM region continued to record a very solid pace of growth.

REVENUE BY ACTIVITY

2020

2019

% change

€ millions

Like-for-like

Reported

CORE SERVICES & D.I.B.S.*

5,080

4,650

+14.2%

+9.2%

English-speaking & Asia-Pacific (EWAP)

1,791

1,715

+6.4%

+4.4%

Ibero-LATAM

1,538

1,360

+24.8%

+13.0%

Continental Europe & MEA (CEMEA)

1,299

1,067

+22.9%

+21.7%

India & Middle East**

452

508

-5.2%

-11.0%

SPECIALIZED SERVICES

652

705

-5.4%

-7.5%

TOTAL

5,732

5,355

+11.6%

+7.0%

* Digital Integrated Business Services

** Ex-Intelenet operations in the Middle East

  • Core Services & Digital Integrated Business Services (D.I.B.S.)

Core Services & D.I.B.S. revenue amounted to €5,080 million in 2020, a year-on-year increase of +14.2% like-for-like. Reported revenue growth came to +9.2%, primarily due to the decline against the euro of the main Latin American currencies, the Indian rupee and, in the second half, the US dollar.

In the fourth quarter, like-for-like growth continued to accelerate compared to the first nine months of the year, particularly in Continental Europe & MEA (CEMEA), which also benefited from a favorable basis of comparison, while the Ibero-LATAM region continued to record a very solid pace of growth. The dynamic performance in segments such as e-tailing, online entertainment and the public sector reflected the ramp-up of contracts secured since late 2019 and the start-up of new contracts signed during the crisis.

---------------------------------------------------------------------------------------------------------------------------------------------

NB:

The Alternative Performance Measures (APMs) are defined in Appendix 3

Teleperformance SE (Societas Europaea). Share capital of €146,826,500. 301 292 702 RCS Paris.

21-25 rue Balzac, 75406 Paris Cedex 08 France. Siret 301 292 702 00059. Code APE 6420Z.

  • o English-speaking & Asia-Pacific (EWAP)

Revenue for the region came to €1,791 million in 2020, up +6.4% like-for-like. The reported gain of +4.4% included an unfavorable currency effect stemming notably from the US dollar's decline against the euro in the second half of the year.

In the fourth quarter, revenue growth accelerated to +15.7% like-for-like.

In the North American market, growth picked up in the fourth quarter in the e-tailing, online entertainment and automotive industries, as well as in consumer electronics.

Over the full year, the healthcare segment - the region's top revenue contributor - expanded at a solid pace. Hospitality and tourism, on the other hand, were heavily impacted by the global health crisis, particularly offshore operations.

Offshore activities in the Philippines stagnated during the year to the advantage of nearshore business in the Ibero-LATAM region, where the environment was more conducive to the large-scale deployment of work-from-home solutions. Business development in the Philippines was challenged in particular by the very tight restrictions on movement maintained in the country's main cities.

In the United Kingdom, operations continued to expand rapidly in the fourth quarter, benefiting from faster deployment of Covid-19 support services to the government and, to a lesser extent, strong sales momentum in e-tailing.

In Asia, revenue grew briskly after the very strict health measures imposed in the first quarter were lifted. China, the leading revenue contributor in Asia, recorded a solid pace of growth, particularly in the consumer electronics and e-tailing segments. Malaysia continued to post very strong growth, thanks mainly to the contribution of contracts signed recently in the social media segment. Business ramp up in Japan, where operations got underway in 2019, contributed to the strong momentum in the region.

  • o Ibero-LATAM

In 2020, revenue for the Ibero-LATAM region amounted to €1,538 million, a year-on-year increase of +24.8% like-for-like. On a reported basis, growth came out at +13.0%, primarily reflecting the decline against the euro of the Brazilian real, the Colombian peso, the Argentinian peso and the Mexican peso.

Like-for-like revenue growth in the fourth quarter came to +27.3%. Thanks to the rapid deployment of a work-from-home model at the height of the crisis, as well as numerous contracts signed with digital economy clients, Teleperformance returned to a very strong pace of growth in this region as early as June.

Colombia, Mexico's nearshore operations, Portugal and Spain were the main drivers behind this performance. In terms of client segments, financial services, e-tailing, online entertainment and consumer electronics all recorded solid growth. Business is also developing rapidly in the automotive and food services markets.

  • o Continental Europe & MEA (CEMEA)

In 2020, CEMEA region revenue rose by +22.9% like-for-like, significantly outpacing the market, to reach €1,299 million. Reported revenue growth came to +21.7%.

The sharp acceleration in growth continued throughout the year, reflecting the ramp-up of major contracts signed before the crisis and the ongoing momentum of brisk sales operations. Fourth-quarter revenue growth stood at +50.2% like-for-like, confirming the return to sustained growth initiated in June and reflecting a particularly favorable basis of comparison for the quarter.

The region's sales performance with multinational clients remained very satisfactory, particularly in the online entertainment, e-tailing and consumer electronics segments. This was notably the case in Greece (multilingual hubs), for the German-speaking market (particularly offshore operations), as well as in Italy, Eastern Europe, Turkey and Egypt. The very robust growth recorded in the fourth quarter also reflects the deployment of Covid-19 support services for governments, particularly in the Netherlands.

---------------------------------------------------------------------------------------------------------------------------------------------

NB:

The Alternative Performance Measures (APMs) are defined in Appendix 3

Teleperformance SE (Societas Europaea). Share capital of €146,826,500. 301 292 702 RCS Paris.

21-25 rue Balzac, 75406 Paris Cedex 08 France. Siret 301 292 702 00059. Code APE 6420Z.

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Teleperformance SE published this content on 25 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 February 2021 16:50:00 UTC.


© Publicnow 2021
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Sales 2021 6 956 M 7 838 M 7 838 M
Net income 2021 585 M 660 M 660 M
Net Debt 2021 2 350 M 2 648 M 2 648 M
P/E ratio 2021 36,7x
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Last Close Price 361,60 €
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Spread / Average Target 18,3%
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