- Teleperformance anticipates full-year like-for-like sales growth at the low end of the previously forecasted +2% to +4% range, with an estimate at +2.14%.
- The company foresees an adjusted EBITA margin between 15% to 15.1%, slightly higher than the estimated 14.9%.
- For the year 2028, Teleperformance expects like-for-like sales growth of +4% to +6%.
- By 2028, the adjusted EBITA margin is projected to be around 15.5%.
- In the first half of the year, Teleperformance reported an adjusted EBITA of €697 million, a 0.9% decline year-on-year, missing the estimate of €732.2 million.
- Revenue for the first half reached €5.12 billion, marking a 0.8% increase year-on-year but slightly below the €5.16 billion estimate.
- First-half like-for-like sales grew by 1.5%, which was close to the projected 1.61%.
- Net income was €249 million, a 14% decline year-on-year, falling short of the estimated €268 million.
- Net free cash flow amounted to €259 million in the first half, a significant 42% decrease year-on-year, and below the €434 million estimate.
- Teleperformance expects to generate around €1 billion in net free cash flow, excluding non-recurring items, in 2025.
- From 2026 to 2028, the company anticipates cumulative net free cash flow of approximately €3 billion, factoring in organic AI efforts.
Teleperformance on Smartkarma
Analyst coverage on Teleperformance on Smartkarma by Baptista Research indicates a positive stance on the company. In their report titled “Teleperformance – Teleperformance: Initiation of Coverage,” Baptista Research highlights the company’s strong performance in fiscal year 2024. Teleperformance achieved over €10 billion in revenue for the first time and generated more than €1.08 billion in free cash flow. This exceptional performance resulted in a statutory revenue increase of 23%, showcasing the company’s financial resilience and operational strength. The report also notes notable growth in the core Business Process Outsourcing (BPO) sector, with significant expansion in the EMEA and APAC regions, achieving over 7% growth in Q4.
A look at Teleperformance Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Teleperformance, a company specializing in customer relationship management services, shows a promising long-term outlook based on the Smartkarma Smart Scores analysis. With a strong score of 4 for both value and dividends, Teleperformance demonstrates solid financial health and potential for returns to investors. Additionally, scoring a respectable 3 for growth and resilience, the company is positioned to maintain steady performance and navigate challenges in the market. Furthermore, boasting a momentum score of 4, Teleperformance exhibits positive market sentiment and a potential for further growth.
Overall, Teleperformance‘s Smart Scores reflect a company with a robust foundation in financial performance and investor returns, as well as a positive trajectory for future growth and market sentiment. With its diverse range of customer management services, including call centers, customer service, and market research, Teleperformance is poised to capitalize on opportunities in the industry and deliver value to its shareholders.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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