In This Article:
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Revenue: Over EUR10 billion, a statutory increase of 23% on a like-for-like basis, 2.6%.
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Free Cash Flow: More than EUR1.08 billion.
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Margin Expansion: Margin increased slightly, with a focus on core BPO business.
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Specialized Services Growth: Double-digit growth, despite a dip due to non-renewal of a visa services contract.
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Majorel Integration Synergies: Over EUR90 million in synergies recorded, with a target of EUR150 million.
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Share Buyback Program: EUR500 million executed, with EUR184 million delivered last year.
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Dividend Proposal: Increase to EUR4.20 per share, with a payout ratio of 48%.
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Debt to EBITDA Ratio: 1.9 times.
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Adjusted Net Result: Up by 10.2% versus last year.
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Currency Effects: EUR110 million impact, with significant effects from Egyptian Lira, Turkish Lira, Brazilian Real, and Colombian Pesos.
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EBITDA Margin: Achieved guidance for progression in 2024 versus 2023 pro forma margin.
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Majorel Synergies: EUR94 million booked in 2024, with EUR58 million in implementation costs.
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Free Cash Flow Generation: Close to EUR1.1 billion, with a cash conversion rate of 52%.
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Net Debt: Reduced to EUR3.1 billion, with a cost of less than 4% and maturity above three years.
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2025 Revenue Guidance: 3% to 5% growth, excluding the non-renewal of the TLS contract.
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2025 Margin Guidance: Expected to improve relative to 2024, with a target of 15% EBITDA margin.
Release Date: February 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Teleperformance SE (TLPFF) achieved over EUR10 billion in revenue for the first time, marking a 23% increase on a statutory basis.
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The company generated more than EUR1.08 billion in free cash flow, demonstrating a strong and resilient business model.
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Specialized services experienced double-digit growth, showcasing the strength and resilience of this business segment.
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The integration with Majorel is on track, with over EUR90 million in synergies recorded, aiming for EUR150 million.
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Teleperformance SE (TLPFF) is proposing an increase in the dividend to EUR4.20 per share, with a payout ratio rising to 48%.
Negative Points
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A long-standing visa services contract was not renewed, causing a dip in Q4 and impacting growth momentum.
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The company experienced a 60-basis point negative impact on margins due to FX effects in 2024.
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The non-renewal of the TLS contract will cause a 60-basis point negative impact on 2025 margins.
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There is a planned voluntary departure of 600 employees in France, with limited impact expected in 2025.
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The company faces pricing pressure in certain segments, such as the telecom vertical, which saw a reduction.