France · Delayed Price · Currency is EUR Teleperformance SE Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 revenue declined as anticipated due to macro headwinds, automation, and contract delays, but strong growth in AI-powered solutions and offshoring markets provided some offset. Guidance for 2026 is reaffirmed, with a recovery expected in H2 and ongoing transformation initiatives.
Fiscal Year 2025
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Solid 2025 results with revenue over EUR 10 billion, stable margins, and record free cash flow, despite FX and Specialized Services headwinds. Major governance changes and a strategic transformation plan are underway, with AI-driven efficiency and growth initiatives set to deliver over EUR 100 million in savings.
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Q3 saw 1.5% like-for-like revenue growth, driven by strong core BPO performance, while specialized services declined due to a major contract loss. Full-year guidance was revised downward amid macro volatility and client caution, with ongoing strategic transformation and AI adoption initiatives.
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Core services delivered strong growth, especially in EMEA and APAC, while specialized services faced headwinds from contract losses and U.S. demand softness. EBITDA margin held steady at constant FX, but FX and macro volatility remain key risks. Guidance was revised to the lower end for revenue growth.
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AI integration and the TP.ai FAB platform are central to future growth, targeting 4%-6% annual revenue increase and a 15.5% margin by 2028. Strategic investments, acquisitions, and partnerships drive expansion into data services and specialized markets, while $3B in free cash flow will fund AI, deleveraging, and shareholder returns.
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Record financial results, successful Majorel integration, and a strengthened board marked the year. All resolutions, including a higher dividend and updated governance, were approved. Strategic focus remains on AI, global expansion, and operational excellence.
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Q1 2025 saw 2.8% revenue growth, with strong core services in EMEA, Asia, and Africa, and robust specialized services aided by the ZP acquisition. Guidance for 2025 is reaffirmed, with margin and cash flow targets intact despite FX and demand headwinds, especially in LanguageLine.
Fiscal Year 2024
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Record 2024 revenue exceeded €10 billion with strong free cash flow and margin expansion, driven by EMEA/APAC growth and Majorel synergies. 2025 guidance targets 3%-5% revenue growth, margin improvement, and €1 billion free cash flow, with continued investment in AI and digital services.
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A $490 million acquisition will integrate a leading U.S. provider of language and interpreting solutions for the deaf and hard of hearing into specialized services, leveraging strong cultural fit and technology synergies. The deal is expected to be accretive from year one and close in early 2025.
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Q3 2024 saw 27% reported revenue growth and 3% like-for-like growth, with all regions contributing and Specialized Services delivering double-digit gains. Guidance for 2024 is reaffirmed, with margin improvement and strong cash flow expected, while Majorel integration and AI adoption progress well.
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Reported 28.2% revenue growth in H1 2024, driven by specialized services and Majorel integration, with EBITDA and cash flow up and guidance for 2%-4% full-year growth reaffirmed. AI adoption and offshoring are accelerating, supporting margin expansion.