The Board of Directors of Teleperformance (Paris:RCF), the global leader
in customer experience management, met today and reviewed the
consolidated financial statements for the year ended December 31, 2012.
The Group also announced its financial results for the year 2012.
Strong growth in revenue and earnings, above Group's target
Organic growth: 6.9% year-on-year
EBITA margin before non-recurring items of 9.1% versus 8.5% in 2011
Full-year 2013 outlook
2012 FINANCIAL HIGHLIGHTS
*Operating profit before amortization of acquired intangible assets and
- Non-recurring items represented a net expense of €11.8 million in 2012
and €19.2 million in 2011
- Amortization of acquired intangible assets amounted to €8.9 million in
2012 and €9.3 million in 2011
Daniel Julien, Chairman and Chief Executive Officer of
Teleperformance, said: "In 2012, we saw a significant increase in
business, with reported growth of 10.4% and organic growth of 6.9%,
exceeding our objectives. EBITA margin before non-recurring items
sharply improved during the year, to 9.1% of revenue, again beating our
initial objective. This good performance was primarily driven by the
fast growth in our businesses in the Ibero-LATAM region, notably in
Brazil where we are benefiting from a favorable environment and a
premium positioning in expanding industries. In Europe, operations in a
certain number of countries, such as the United Kingdom, Spain and
Germany, reported a rebound in business and margins. Thanks to the tight
management of our capital expenditure and assets, we once again
increased our return on capital employed. These very good results
confirm our global leadership of the outsourced customer experience
management market and demonstrate the success of our value-creating
Today, we are leveraging a number of powerful advantages to seize the
opportunities offered by the mobile Internet revolution, which has only
just begun. These include 140,000 young, ambitious, motivated employees,
integrated processes and technology and an extremely solid customer
base. The right moment has now come to carry out a smooth, orderly
transition in the Group's leadership. The Board of Directors will
therefore ask shareholders at the Annual Meeting next May 30 to elect
Paulo Cesar Vasques as director, with the aim of appointing him Chief
Executive Officer. An engineer with an MBA degree, Mr. Vasques, 43, is
an outstanding executive who in Brazil, in just a few years,
successfully developed one of our most remarkable member companies. He
is the symbol of a new generation of leaders, aged 35 to 50, who
represent the life blood of our Group and who are now gradually moving
into positions of responsibility, where they will drive our profitable
growth for decades to come. I will remain Chairman of the Board
of Directors and continue to exercise my CEO's duties with
Teleperformance Group Inc. for at least two or three more years.
For 2013, we expect to deliver further gains in revenue, EBITA margin
before non-recurring items, and return on capital employed, reflecting
our confidence in our positioning and the future of our markets."
Consolidated revenue amounted to €2,347.1 million in 2012, an increase
of 10.4% as reported. At constant scope of consolidation and exchange
rates, organic growth was 6.9%, outpacing the 3.5% reported in 2011.
Changes in exchange rates, mainly the appreciation of the US dollar
against the euro, added €71.9 million to reported revenue.
Changes in the scope of consolidation had a slight €2.2-million negative
impact, reflecting the disposal of the Hungarian subsidiary in 2011.
The 6.9% organic growth was led by the increase in business in the
Ibero-LATAM region, particularly in Brazil.
Organic growth also gained momentum throughout the year, increasing from
3.1% in the first half.
REVENUE BY REGION
Regional revenue rose by 11.1% over the year, lifted by the increase in
the US dollar and, to a lesser extent, the British pound against the
euro. At constant scope of consolidation and exchange rates, growth in
the region was 3.2%.
Growth strongly varied from one half to the next. In the first half,
business showed a year-on-year decline due to the particularly high
prior-year comparatives, reflecting the ramp-up of a significant
contract in the United States in first-half 2011. Second-half figures,
however, benefited from a much more favorable basis of comparison,
enabling regional operations to return to growth over the full year.
Operations in the United Kingdom enjoyed significant growth following
contract wins in new industries.
Regional revenue rose by 17.4% as reported and 16.5% at constant scope
of consolidation and exchange rates.
The Group enjoyed a positive dynamic across the region during the year,
with operations in every country except Argentina delivering revenue
Growth was spectacular in Brazil, where operations are benefiting from a
favorable economic environment and their premium positioning, which is
helping to drive market share gains in the country's fast expanding
industries, such as banking and the Internet/media sector.
Operations in Spain have returned to growth. In Portugal, the Group
continues to benefit from its high value-added positioning thanks to its
multilingual hubs offering. This end-to-end customer experience
management solution has proven highly successful with large accounts
seeking to simplify their customer service strategy in Europe.
Regional revenue ended the year up 3.0% as reported and 2.6% at constant
scope of consolidation and exchange rates.
The renewed growth momentum was driven by the improvements reported in
Northern Europe, the Eastern European countries, Greece and Turkey. Firm
demand in Germany, the Netherlands and, to a lesser extent, Italy also
made a positive contribution to the year's performance.
All of these positive factors helped to offset the decline in business
at Teleperformance France which remained impacted by the major shift in
the competitive landscape of its largest market, mobile telephony.
The contrasting trends in Teleperformance's three core operating regions
over the past three years have noticeably altered its profile.
Continental Europe now accounts for less than 30% of consolidated
revenue, while the Ibero-LATAM region represents 31% and the
English-speaking market & Asia-Pacific region 39%.
Consolidated EBITDA before non-recurring items rose by 14.1% to €306.2
million in 2012, representing 13.0% of revenue versus 12.6% in 2011.
Consolidated EBITA before non-recurring items stood at €213.9 million
for the year, an 18.3% gain on the €180.8 million reported in 2011.
EBITA margin before non-recurring items widened to 9.1% from 8.5% a year
earlier, exceeding the Group's target, which was at the upper end of a
range from 8.5% to 9%.
EBITA MARGIN BEFORE NON-RECURRING ITEMS BY REGION - EXCLUDING THE
All of the operating regions helped to drive margin improvement over the
year. The English-speaking market & Asia-Pacific and the Ibero-LATAM
regions continued to deliver double-digit EBITA margins before
non-recurring items, with year-on-year increases to respectively 11.3%
and 12.6% in 2012. The Continental Europe & MEA region reported a
positive margin, up slightly on 2011.
Non-recurring items represented a net expense of €11.8 million for the
year, analyzed as follows:
After accounting for these non-recurring items and the amortization of
intangible assets (€8.9 million versus €9.3 million in 2011), operating
profit came to €193.2 million for the year, up a sharp 26.9% from 2011.
Net financial expense stood at €7.3 million, versus €5.6 million in
2011. It included a non-recurring €3 million expense incurred in setting
the new €300-million syndicated line of credit.
Income tax expense amounted to €56.5 million for the year, corresponding
to an effective tax rate of 30.4%, versus 35.2% in 2011. The improvement
primarily reflected the return to profit of operations in a certain
number of countries that had reported tax losses in previous years.
Following a certain number of buybacks, minority interests in net profit
stood at €1.9 million in 2012, down from €3.1 million a year earlier.
As a result, net profit attributable to shareholders came to €127.5
million, up 38.7% from the €91.9 million reported in 2011.
CASH FLOWS AND BALANCE SHEET STRUCTURE
The programs underway for the past two years to increase cash generation
were pursued in 2012. Cash flow before non recurring items and taxes
stood at €296.1 million, up 15.3% from €256.9 million in 2011.
Restructuring cash outlays declined significantly to €10 million from
€47.7 million the year before, when they rose sharply on implementation
of the restructuring plan in France that was decided in late 2010 but
carried out primarily in 2011.
Consolidated working capital requirement swung to a €26 million outflow
in 2012 from a €32.6 million inflow in 2011, mainly due to the robust
increase in business at year-end, even as days sales outstanding
continued to improve, with a decline of two days vs 2011.
Net capital expenditure was nearly unchanged as a percentage of revenue,
at 4.6%, and stood at €108.4 million versus €95.5 million in 2011. Net
free cash flow continued to increase, rising to €94.5 million from €88.2
million in 2011, while net cash and cash equivalents rose by €54.9
million to end the year at €80 million.
As a result, the Group's balance sheet at December 31, 2012 was very
solid. Equity amounted to 1,382.4 million, of which €1,376.4 million
attributable to shareholders. It amply covered the Group's non-current
assets, which totaled €1,138.6 million at year-end.
CHANGE IN GOVERNANCE
Today, Teleperformance is a global industry leader, ready to meet the
challenges and seize the opportunities offered by the mobile Internet
To do so, it has successfully built up a wide array of competitive
In accordance with the commitment to separating the offices of Chairman
of the Board of Directors and Chief Executive Officer, the Board is
In this way, the Group will be led towards new success by a
strengthened, younger management team, thereby demonstrating its
solidity and proficiency in managing the planning of transition from
generation to the next.
FULL-YEAR 2013 OUTLOOK
In 2013, Teleperformance is pursuing its strategy of creating value and
driving balanced growth, which will lead to a further improvement in its
return on capital employed.
The English-speaking markets & Asia-Pacific and Ibero-LATAM regions are
expected to continue delivering a high EBITA margin before non-recurring
items, while the margin in the Continental Europe & MEA region, despite
the uncertain economic environment, should continue to gradually
improve, notably in France, Germany and Italy.
For the full year, Teleperformance expects to see an organic growth in
revenue of between 3% to 5%, as well as an improvement in its
profitability ratios, with the objective of an EBITA margin before
non-recurring items of between 9.3% and 9.5%.
Following the improvement in net profit for the year, the Board of
Directors will recommend that shareholders at the Annual Meeting on May
30 approve an increase in the 2012 dividend to €0.68 per share from the
€0.46 paid in respect of 2011, payable in cash or in shares at the
shareholders' option. The proposed dividend corresponds to a total
payout of 30%, in line with market practices and the Group's dividend
payment policy defined two years ago.
May 7, 2013: First-quarter 2013 revenue released
May 30, 2013: Annual Shareholders Meeting
Teleperformance, the world's leading provider of outsourced CRM and
contact center services, serves companies around the world with customer
acquisition, customer care, technical support and debt collection
programs. In 2012, it reported consolidated revenue of €2,347 million
($3,028 million, based on €1 = $1.29).
The Group operates about 98,000 computerized workstations, with 138,000
employees across more than 260 contact centers in 46 countries serving
78 markets. It manages programs in more than 66 languages and dialects
on behalf of major international companies operating in a wide variety
Teleperformance shares are traded on the NYSE Euronext Paris market,
Compartment A, and are eligible for the deferred settlement service.
They are included in the following indices: SBF 120, STOXX 600 and
France CAC Mid & Small.
Symbol: RCF - ISIN: FR0000051807 - Reuters: ROCH.PA - Bloomberg: RCF FP
For further information and media inquiries please visit the
Teleperformance website at www.teleperformance.com.
STATEMENT OF INCOME
CASH FLOW STATEMENT
NB: The consolidated financial statements have been audited. The
auditors will issue their report once they have completed the procedures
required for the publication of the annual financial report
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