Teleperformance (TEP) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 revenue reached €2,520 million, up 26.7% as reported and 3.0% pro forma, with sequential acceleration throughout the year.

• Growth momentum observed across all operating regions and verticals, with EMEA & APAC up 2.8% and Americas returning to positive growth at 0.3% in Q3.

• Specialized Services delivered double-digit growth, driven by LanguageLine Solutions, TLScontact, and cross-company synergies.

• Majorel integration is progressing as planned, supporting reported growth and strengthened by new governance appointments.

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

Financial highlights

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

• 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 weaker emerging market currencies.

• Pro forma growth of €155 million year-over-year for nine months, with Q3 contributing €72 million.

• Robust balance sheet with leverage expected to remain below 2x EBITDA.

Outlook and guidance

• 2024 pro forma revenue growth target confirmed at 2%-4%, with EBITA margin before non-recurring items expected to improve by 10–20 bps.

• Sustained net free cash flow growth targeted, with net debt-to-EBITDA ratio below 2x.

• Continued share buybacks and debt reduction planned, with capital allocation for 2025 under review.

• Guidance reaffirmed, with Q4 performance dependent on macro demand in November and December.