- Teleperformance forecasts a like-for-like sales increase of 1% to 2% for the full year, initially predicted to be at the lower end of 2% to 4%.
- The adjusted EBITA margin is expected to be between 14.7% and 15%, with previous observations ranging from 15% to 15.1%.
- The anticipated net free cash flow is around €900 million, compared to an estimate of €926 million.
- In the third quarter, like-for-like sales increased by 1.5%, slightly above the estimate of 1.38%.
- Core Services achieved a like-for-like revenue growth of 3.9%, surpassing the estimate of 3.46%.
- Specialized Services experienced a like-for-like revenue decline of 12.3%, worse than the projected decrease of 9.7%.
- Total revenue for the third quarter was €2.51 billion, a 0.5% decrease year-on-year, just under the estimate of €2.52 billion.
- For the mid-term, Teleperformance aims for sustained mid-single digit like-for-like revenue growth, targeting 4% to 6% by 2028.
- The recurring EBITA margin is expected to reach around 15.5% in 2028, following AI transformation initiatives.
- Teleperformance plans to generate approximately €3 billion in cumulative net free cash flow from 2026 to 2028, including organic AI investment.
Teleperformance on Smartkarma
Teleperformance, a leading global player in customer experience management, recently unveiled its first-half 2025 results in an earnings call. According to Baptista Research‘s report titled “TEP FP – Teleperformance SE Faces Margin Pressure — Can Cost Discipline in LLS Turn the Tide?”, the company displayed a mix of positive and concerning aspects. Highlighting commendable growth in core services with a nearly 3% rise in like-for-like revenue, Teleperformance‘s performance has garnered attention from investors.
Baptista Research‘s report on Smartkarma delves into the nuances of Teleperformance‘s current position, offering valuable insights for potential investors. While the analysis points out areas of margin pressure, it also poses the question of whether cost discipline in LLS could steer a positive trajectory. This mixed sentiment surrounding Teleperformance‘s future outlook underscores the need for thorough evaluation by interested parties seeking to navigate the investment landscape.
A look at Teleperformance Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.4 |
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
Analysing Teleperformance‘s long-term outlook using Smartkarma Smart Scores reveals a promising future ahead. With a high Dividend score of 5, investors can expect strong returns from dividend payments. Additionally, the Value score of 4 indicates that the company’s stock may be undervalued, presenting a potential buying opportunity. While Growth and Resilience scores come in at 3, suggesting moderate future growth and a decent ability to withstand market challenges.
However, the Momentum score of 2 signals a slower pace in stock price movement compared to other factors. Overall, Teleperformance, a company offering a range of customer relationship management services including call centers, customer service, and telemarketing, presents an attractive investment opportunity with its solid dividend performance and potential value appreciation in the long run.
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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