Teleperformance (TEP) H1 2024 earnings summary

Executive summary

• H1 2024 revenue reached €5,076 million, up 28.2% year-over-year, with pro forma like-for-like growth of 1.7% and Q2 pro forma growth accelerating to 2.4%.

• Majorel integration progressing smoothly, with no client losses and cost synergies expected to reach €100 million in 2024 and €150 million in 2025, with further upside potential.

• Over 300 AI and GenAI projects underway, driving client growth, internal efficiency, and productivity, with industry awards and new digital partnerships.

• Specialized Services delivered double-digit organic growth, led by LanguageLine Solutions in the US.

• Governance changes include appointment of Moulay Hafid Elalamy as Lead Independent Director.

Financial highlights

• EBITDA before non-recurring items at €982 million (19.4% margin); EBITA before non-recurring items at €703 million (13.9% margin, up 10 bps pro forma).

• Adjusted net profit at €432 million, up 25.9% year-over-year; diluted adjusted EPS at €7.17.

• Net free cash flow reached €448 million, up 45% year-over-year.

• Net profit (Group share) at €291 million; diluted EPS at €4.83.

• Net debt-to-EBITDA ratio below 2x; €117 million in share buybacks in H1.

Outlook and guidance

• Full-year 2024 pro forma revenue growth confirmed at 2%-4%, with higher growth expected in H2 due to easier comps and new business.

• EBITA margin before non-recurring items expected to increase by 10–20 bps pro forma, supported by seasonality and synergy acceleration.

• Sustained increase in net free cash flow and continued share buyback program planned.

• Net debt/EBITDA ratio targeted below 2x by year-end; credit rating expected to remain at BBB.