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Teleperformance SE (TLPFF) (FY 2024) Earnings Call Highlights: Record Revenue and Strategic ...

In This Article:

  • Revenue: Over EUR10 billion, a statutory increase of 23% on a like-for-like basis, 2.6%.

  • Free Cash Flow: More than EUR1.08 billion.

  • Margin Expansion: Margin increased slightly, with a focus on core BPO business.

  • Specialized Services Growth: Double-digit growth, despite a dip due to non-renewal of a visa services contract.

  • Majorel Integration Synergies: Over EUR90 million in synergies recorded, with a target of EUR150 million.

  • Share Buyback Program: EUR500 million executed, with EUR184 million delivered last year.

  • Dividend Proposal: Increase to EUR4.20 per share, with a payout ratio of 48%.

  • Debt to EBITDA Ratio: 1.9 times.

  • Adjusted Net Result: Up by 10.2% versus last year.

  • Currency Effects: EUR110 million impact, with significant effects from Egyptian Lira, Turkish Lira, Brazilian Real, and Colombian Pesos.

  • EBITDA Margin: Achieved guidance for progression in 2024 versus 2023 pro forma margin.

  • Majorel Synergies: EUR94 million booked in 2024, with EUR58 million in implementation costs.

  • Free Cash Flow Generation: Close to EUR1.1 billion, with a cash conversion rate of 52%.

  • Net Debt: Reduced to EUR3.1 billion, with a cost of less than 4% and maturity above three years.

  • 2025 Revenue Guidance: 3% to 5% growth, excluding the non-renewal of the TLS contract.

  • 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

  • Teleperformance SE (TLPFF) achieved over EUR10 billion in revenue for the first time, marking a 23% increase on a statutory basis.

  • The company generated more than EUR1.08 billion in free cash flow, demonstrating a strong and resilient business model.

  • Specialized services experienced double-digit growth, showcasing the strength and resilience of this business segment.

  • The integration with Majorel is on track, with over EUR90 million in synergies recorded, aiming for EUR150 million.

  • Teleperformance SE (TLPFF) is proposing an increase in the dividend to EUR4.20 per share, with a payout ratio rising to 48%.

Negative Points

  • A long-standing visa services contract was not renewed, causing a dip in Q4 and impacting growth momentum.

  • The company experienced a 60-basis point negative impact on margins due to FX effects in 2024.

  • The non-renewal of the TLS contract will cause a 60-basis point negative impact on 2025 margins.

  • There is a planned voluntary departure of 600 employees in France, with limited impact expected in 2025.

  • The company faces pricing pressure in certain segments, such as the telecom vertical, which saw a reduction.