Teleperformance (TEP) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 revenue grew 26.7% as reported and 3.0% pro forma, driven by Majorel integration and strong Specialized Services momentum across all regions and verticals.

• EMEA & APAC regions led growth (+2.8% Q3 pro forma), with Americas returning to positive growth at 0.3%.

• Specialized Services delivered double-digit growth, supported by cross-company synergies and high-value interpreting business.

• Majorel integration is progressing as planned, with governance strengthened by new leadership appointments.

• Over 160 new AI projects launched for 130+ clients in Q3, and 44,000+ AI and EI training programs completed.

Financial highlights

• Q3 2024 revenue: €2,520m (+26.7% reported, +3.0% pro forma); 9M 2024 revenue: €7,596m (+27.7% reported, +2.1% pro forma).

• Core Services & D.I.B.S. Q3 revenue: €2,140m (+30.3% reported, +1.6% pro forma); Specialized Services Q3 revenue: €380m (+9.8% reported, +11.6% pro forma).

• Currency effects reduced reported revenue by €112m in 9M 2024, mainly due to emerging market currencies.

• EBITA margin before non-recurring items expected to improve by 10–20 bps from 14.9% in 2023.

• Net free cash flow growth remains strong, with net debt-to-EBITDA ratio below 2x.

Outlook and guidance

• 2024 pro forma revenue growth guidance reaffirmed at 2%–4%, with EBITA margin improvement of 10–20 bps.

• Sustained net free cash flow growth and robust balance sheet targeted.

• Q4 performance will depend on macro demand in November and December, with typical seasonal strength anticipated.

• No material impact from hyperinflation expected in Q4.

• Pipeline for new business is stronger than a year ago, supporting a positive outlook for 2025.