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2013 Was a Record Year for TeleperformancePARIS --(Business Wire)-- Regulatory News : The Board of Directors of Teleperformance (News - Alert) (Paris:RCF), the global leader in outsourced multichannel customer experience management, met today and reviewed the consolidated and parent company financial statements for the year ended December 31, 2013. The Group also announced its financial results for the year.
2013 FINANCIAL HIGHLIGHTS
(1)EBIT before amortization of acquired intangible assets and
non-recurring items…
Paulo César Salles Vasques, Chief Executive Officer of
Teleperformance, said: Our good performance was primarily driven by growth in the United States and increasing demand in a large number of markets in our Ibero-LATAM region, specially Mexico, Colombia and Portugal. We also saw positive developments in Continental Europe, Middle East and Africa as well. From an overall business management perspective, the health of our balance sheet tangibly shows our people, client, and innovation strategies are working and providing a clear competitive differentiation for us. We are well positioned across all of our core services and our markets are positively responding to our capabilities and solutions. In short, we intend to use our strong momentum to continue leading the path of the entire industry and to optimize our own potential. I am also happy to tell you we expect to deliver another year of strong growth in 2014. Right now, we see a +5% to +7% like-for-like increase in revenues and an additional improvement in EBITA margin before non-recurring items, to be between 9.5% and 9.7%. We are also targeting a further increase in return on capital employed above the 11.7%* we attained in 2013.
We have a lot of hard work ahead of us as usual, but I remain
optimistic for our growth and financial health in 2014 and beyond. A
special thanks to the exceptional support of Daniel Julien and our
senior management team and the passion of all of our people to do a
great job on every single customer interaction". CONSOLIDATED REVENUE Consolidated revenue amounted to €2,432.9 million in 2013, an increase of +7.9% at constant scope of consolidation and exchange rates (like-for-like) and of +3.7% as reported. Changes in exchange rates had a €93.2 million negative impact on reported revenue that mainly reflected the decline in the Brazilian real, Argentine peso, US dollar and British pound against the euro. REVENUE BY REGION 2013 revenue performance was primarily shaped by the sharp increase in business in the Ibero-LATAM region, particularly in Mexico, Colombia and Portugal, and in the English-speaking market & Asia-Pacific region, especially in the United States and China. The percentage of revenue derived from the rapidly growing Ibero-LATAM and English-speaking market & Asia-Pacific regions was stable compared with 2012, at 70.2% of the consolidated 2013 total. The Continental Europe & MEA region accounted for around 30% of revenue, also unchanged from the previous year. ANNUAL REVENUE BY REGION
Organic growth in revenue was +8.1%. Reported growth was +4.0% over the year, held back by the decline in the US dollar and, to a lesser extent, the British pound against the euro. The region achieved an outstanding year. The Asia-Pacific business notably saw very strong growth, especially in China where the Group successfully forged close partnership relations with locally based multinationals. In North America, growth was robust throughout the year and particularly in the final quarter, when revenue surged +9.2% on the ramp-up of new contracts in new business sectors (healthcare and insurance).
Operations in the Ibero-LATAM region continued to expand at a double-digit figure in 2013, delivering like-for-like growth of +11.2%. Reported growth came to +3.4%, reflecting a year shaped by an adverse currency environment, notably with the Brazilian real losing close to 15% and the Argentine peso 25% against the euro during the period. All the countries in the region contributed to growth except Argentina, impacted by its current economic conditions. The most dynamic growth contributors were Colombia, Mexico and Portugal, while growth in Brazil has begun to slow. As in the English-speaking market & Asia-Pacific, the Group remained committed to investing in this promising region throughout 2013. Continental Europe & MEA Regional revenue ended the year +4.6% like-for-like and +3.6% as reported. Revenue improved in every country in the region, except for France, with growth accelerating in the second half. This performance was attributable to the development of multilingual European hubs and the return to growth in several countries. Illustrating this trend, operations in Italy saw an upturn in 2013. Business in the Netherlands, Russia and Southern Europe (Greece and Turkey) benefited from a solid sales dynamic, particularly with global customers. Revenue in France continued to be affected by a persistently difficult environment in the telecommunications industry, but the decline was cushioned by the award of a few contracts in new business sectors. RESULTS EBITDA before non-recurring items rose by +6% year-on-year to €324.5 million, or 13.3% of revenue, an improvement of 0.3 points on 2012. EBITA before non-recurring items stood at €225.7 million, +5.5% from the €213.9 million reported in 2012. EBITA margin before non-recurring items widened by 0.2 points to 9.3% from 9.1% a year earlier, in line with the target for the year. EBITA BEFORE NON-RECURRING ITEMS BY REGION - EXCLUDING HOLDING COMPANIES
The English-speaking market & Asia-Pacific region continued to deliver a high EBITA margin before non-recurring items, despite an adverse transaction effect mainly resulting from the weakening of the US dollar against other currencies. The Ibero-LATAM region continued to deliver a double-digit margin, at 11.8%, despite the challenges facing the Argentine market. The Continental Europe & MEA region saw a further increase this year in its operating margin, led by growth in business in a number of southern and northern European countries. Reported EBIT amounted to €196.3 million, versus €193.2 million in the previous year. EBIT growth at constant exchange rates would have come to +6%, without the negative currency translation impact of €8 million. EBIT also reflected the following non-recurring expenses:
Net financial expense stood at €7.6 million, versus €7.3 million in 2012. Income tax expense amounted to €59.4 million, corresponding to an effective tax rate of 31.5%, versus 30.4% in the prior year. Following the buyback of non-controlling interests in TLScontact and the Turkish subsidiary, minority interests in net profit amounted to €0.5 million in 2013, versus €1.9 million in 2012. At €128.8 million, net profit attributable to shareholders was slightly higher than in 2012 (€127.5 million). Diluted earnings per share were stable year-on-year, at €2.27. The Board of Directors will recommend that shareholders at the Annual Meeting on May 7 approve an increase in the 2013 dividend to €0.80 per share from the €0.68 paid in respect of 2012. The proposed dividend corresponds to a total payout of 35%, up from 30% last year. CASH FLOWS AND FINANCIAL STRUCTURE Cash flow before tax rose to €307.7 million in 2013 from €286.1 million in 2012. The amount of tax paid, at €71.1 million in 2013, was significantly higher vs 2012 Consolidated working capital requirement outflow was €46.2 million in 2013 versus an outflow of €26.0 million in 2012, reflecting the strong increase in business late in the year, particularly in North America. Net capital expenditure rose significantly to €126.1 million, or 5.2% of revenue, versus €108.4 million and 4.6% in 2012. Reflecting the organic growth initiatives deployed by the Group, these investments were primarily committed to create or expand centers serving fast growing markets in Latin America, the United States and the Philippines. Free cash flow ended the year at €64.3 million. After the payment of €16.9 million in dividends, and taking into account liabilities under earn-out agreements, net cash stood at €86.8 million at the year-end. The Group's financial structure therefore is very solid, with equity of €1,395.4 million at December 31, 2013. DEVELOPMENTS AND AWARDS
In 2013, Teleperformance continued to deploy its strategy focused on driving organic growth in its business (with new facilities). Teleperformance pursued its expansion by opening 16 new contact centers and increasing the number of workstations in existing facilities, in many key countries. In the English-speaking market & Asia-Pacific region, six new centers were opened and capacity was increased at seven existing facilities. The Ibero-LATAM region, where growth remains robust, was again the leading locus of Group capital spending in 2013, with eight new contact centers opened. In the Continental Europe & MEA region, two new facilities were opened in 2013, in Turkey and Greece.
In 2013, Teleperformance again won numerous awards from prestigious institutions and well-known independent research firms around the world. This was in recognition of Teleperformance 's sustained leadership and excellent service across its markets. Independent awards also acknowledged Teleperformance for its people strategy, innovation capabilities and the company's commitment to social and environmental responsibility. Some of this recognition includes:
2014 OUTLOOK Led by the recent strategic investments, the initiatives deployed to strengthen its presence in new business sectors, and still buoyant demand, Teleperformance expects to deliver another year of growth, with the following full-year 2014 objectives:
ANALYST AND INVESTOR INFORMATION MEETING
Wednesday, February 26, 2014 at 9:00 am CET INVESTOR CALENDAR
ABOUT TELEPERFORMANCE GROUP Teleperformance, the worldwide leader in outsourced multichannel customer experience management, serves companies around the world with customer care, technical support, customer acquisition and debt collection programs. In 2013, it reported consolidated revenue of €2,433 million ($3,236 million, based on €1 = $1.33). The Group operates 110,000 computerized workstations, with close to 149,000 employees across around 230 contact centers in 46 countries and serving more than 150 markets. It manages programs in 63 languages and dialects on behalf of major international companies operating in a wide variety of industries. Teleperformance shares are traded on the NYSE Euronext Paris market, Eurolist-Compartment A, and are eligible for the deferred settlement service. They are included in the following indices: SBF 120, STOXX 600 and France CAC Mid & Small. Symbol: RCF - ISIN: FR0000051807 - Reuters (News - Alert): ROCH.PA - Bloomberg: RCF FP For further information, please visit the Teleperformance website at www.teleperformance.com. APPENDICES REVENUE BY REGION
CONSOLIDATED INCOME STATEMENT in millions of euros
CONSOLIDATED BALANCE SHEET in millions of euros
CONSOLIDATED CASH FLOW STATEMENT in millions of euros
NB: The consolidated financial statements have been audited. Auditors report is currently in progress. |
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