Teleperformance (TEP) H2 2024 earnings summary

Executive summary

• Achieved record 2024 revenue of €10.28 billion, up 23.2% reported and 2.6% pro forma, with Q4 acceleration to 4.0% growth.

• Recurring EBITA margin rose to 15.0% from 14.9% in 2023; net free cash flow exceeded €1.08 billion, up 33.5% year-over-year.

• Majorel integration delivered €94 million in cost synergies; ZP acquisition completed, strengthening Specialized Services.

• Share buyback of €184 million executed as part of a €500 million program; dividend per share increased to €4.20, payout ratio up to 48%.

• Governance enhanced with CEO/chairman role separation and new board members with AI and international expertise.

Financial highlights

• Reported revenue grew 23.2% to €10,280 million; pro forma revenue up 2.6% year-over-year.

• Recurring EBITA reached €1,537 million (15.0% margin); adjusted net profit up 10.2% to €807 million.

• Net income: €523 million; diluted EPS before non-recurring items rose to €13.44.

• Net free cash flow of €1,084 million, up 33.5% year-over-year; cash conversion rate at 52%.

• Net debt reduced to €3,890 million; net debt/recurring EBITDA at 1.9x.

Outlook and guidance

• 2025 like-for-like revenue growth targeted at 3%-5% (excluding non-renewal of major TLS contract); recurring EBITA margin to increase by up to 10 bps.

• Free cash flow target of €1 billion before non-recurring items; continued deleveraging and dividend growth planned.

• ZP consolidation from February 2025; up to €100 million targeted for AI partnership investments.

• Mid-single-digit medium-term organic growth targeted, with further M&A under consideration.