Teleperformance (TEP) H1 2025 earnings summary

Executive summary

• H1 2025 revenue reached €5,116 million, up 1.5% like-for-like and 0.8% reported, driven by Core Services acceleration and new AI-powered solutions, despite currency headwinds and a challenging macroeconomic environment.

• Core Services saw strong momentum, especially in EMEA & APAC, with Q2 like-for-like growth accelerating to 3.5%.

• Specialized Services faced significant headwinds, declining 7.0% like-for-like due to the non-renewal of a major visa contract and US market volatility, but excluding this, grew 3.0% like-for-like.

• Profitability remained stable at constant FX, with recurring EBITA margin at 13.6% reported (13.9% at constant FX), supported by efficiency measures and AI integration.

• Strategic plan 'Future Forward' launched, focusing on AI integration and operational agility.

Financial highlights

• Core Services revenue grew 2.9% like-for-like in H1, with EMEA & APAC up 4.7%; Americas up 0.9% like-for-like.

• Specialized Services declined 7.0% like-for-like due to the visa contract non-renewal, but excluding this, grew 3.0%; LanguageLine Solutions saw low single-digit growth.

• EBITA before non-recurring items was €697 million (13.6% margin), down from €703 million (13.9%) in H1 2024, mainly due to FX and US volatility.

• Net profit (Group share) was €249 million, down from €291 million, with diluted EPS at €4.19 (vs. €4.83).

• Net debt increased to €4,482 million as of June 30, 2025, mainly due to acquisitions, share buybacks, and new bond issuance.

Outlook and guidance

• 2025 group like-for-like revenue growth expected at the lower end of the 2–4% range.

• Recurring EBITA margin guidance at 15–15.1% at constant exchange rates.

• Sustainable net free cash flow of around €1 billion targeted for 2025, before non-recurring items.

• 2026–2028 ambitions: 4–6% organic revenue growth, ~15.5% recurring EBITA margin, cumulative net FCF of ~€3 billion, and target leverage of 1.2x net debt/EBITDA.

• No full recovery expected in Specialized Services in H2; cautious on LanguageLine Solutions and TLScontact.