Teleperformance (TEP) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 revenue grew 2.8% as reported, 1.6% like-for-like, and 2.6% like-for-like adjusted for a major contract non-renewal.

• Core Services showed strong momentum, especially in EMEA, Asia, Africa, and India, with growth led by these regions.

• Specialized Services, including the ZP acquisition, grew 10.7% reported; adjusted for contract loss, like-for-like growth was close to 4%.

• Integration of Majorel and ZP progressing, with €20–30 million in cost synergies targeted for 2025.

• AI partnership program expanded with Ema and Parloa, with up to €100 million investment planned for 2025.

Financial highlights

• Q1 2025 revenue: €2,613 million, up 2.8% reported and 1.6% like-for-like year-over-year.

• Core Services revenue: €2,217 million (+1.5% reported, +2.3% like-for-like); Specialized Services: €396 million (+10.7% reported, -2.4% like-for-like, +3.9% like-for-like adjusted).

• EMEA & APAC grew +3.8% like-for-like; Americas grew +0.8% like-for-like.

• Currency effects were slightly negative overall, mainly due to weaker emerging market currencies.

• Significant growth in government, travel, hospitality, and media/entertainment verticals.

Outlook and guidance

• 2025 like-for-like revenue growth expected at 2–4%, or 3–5% adjusted for contract impact.

• Recurring EBITA margin expected between 15.0% and 15.1%, up 0–10 basis points.

• Net free cash flow guidance of around €1 billion before non-recurring items; net debt/recurring EBITDA ratio to decrease.

• Volatile economic environment anticipated, but positive market dynamics from offshoring and automation trends.

• Further details on capital allocation and AI strategy to be shared at Capital Markets Day on June 18.