Teleperformance: First-quarter 2015 revenue

Regulatory News:

Teleperformance (Paris:RCF), the global leader in outsourced multichannel customer experience management, today released its quarterly review for the period ended March 31, 2015.

SUSTAINED LIKE-FOR-LIKE REVENUE GROWTH

• Revenue: €831 million
• Like-for-like growth: + 10.0%
• Solid growth dynamic in every region

2015 GUIDANCE CONFIRMED

• Like-for-like revenue growth of at least 7%
• Increase in the EBITA margin before non-recurring items to at least 10.3%

Daniel Julien, Executive Chairman, and Paulo César Salles Vasques, Chief Executive Officer, said:
"In the first quarter of 2015, Teleperformance's revenue gained + 10% like-for-like on the prior-year period, and + 36% as reported. These figures reflect both the uptrend in the market for outsourced customer experience management and Teleperformance's own dynamic performance in this market. We are strongly positioned to seize new opportunities, and prepared to tackle new challenges relating to the rise in attacks on data security.”

CONSOLIDATED REVENUE

Consolidated revenue amounted to €831 million in the first quarter of 2015, representing a year-on-year increase of + 10.0% at constant exchange rates and scope of consolidation (like-for-like).

On a reported basis, growth was + 36.3%. It includes the aggregate €99 million contribution from Aegis USA Inc., consolidated since August 7, 2014, and City Park Technologies (CPT), consolidated since July 1, 2014. It also reflects the €56 million positive currency effect arising notably from the increase in the US dollar and the British pound against the euro.

REVENUE BY REGION

All of the operating regions reported satisfactory like-for-like growth in the first quarter of 2015.

The geographic mix remains robust, with 75% of revenue generated in predominant markets delivering profitability and growth.

The English-speaking market & Asia-Pacific region now accounts for 50% of consolidated revenue, up significantly from 40% a year earlier, primarily due to the acquisition of Aegis USA Inc. The Ibero-LATAM and Continental Europe & MEA regions each contributed 25% to the total.

ANNUAL REVENUE BY REGION

• English-speaking market & Asia-Pacific

In first-quarter 2015, revenue in the English-speaking market & Asia-Pacific region rose by + 9.9% like-for-like and by + 69.7% as reported, led by the acquisition in the United States and the positive currency effect.

Demand remains very strong in the region. In the United States, where the economic environment is favorable, the Group saw good growth in business with existing clients and the ramp-up of a large number of new contracts (mainly onshore) recently signed with clients in a variety of industries, such as insurance, financial services, healthcare and online travel agencies.

In the Asia-Pacific region, business is continuing to grow in China, where the Group is supporting the fast expansion of its large international accounts.

• Ibero-LATAM

Operations in the Ibero-LATAM region expanded at a satisfactory pace in first-quarter 2015, delivering growth of + 8.3% like-for-like. Reported growth stood at + 16.3%, reflecting the favorable currency effect following the year-on-year increase in the US dollar against the euro.

Despite the lackluster local economy, revenue in Brazil was lifted during the quarter by the start-up of new contracts signed with existing customers in the second half of last year.

Operations in Portugal turned in the region's fastest growth, still powered by the success of the Lisbon-based multilingual platforms.

• Continental Europe & MEA

In the first quarter, regional revenue rose by + 12.0% like-for-like and + 11.5% as reported, held back by the negative currency effect caused primarily by the decline in the Russian ruble and the Swedish krona against the euro.

Growth over the period was mainly led by the development of the visa application management business (TLScontact), which had gained new momentum in second-quarter 2014 following the start-up of a major contract. This impact is expected to ease considerably in the second quarter of this year.

The Group is also continuing to post solid business gains with existing global customers, particularly in the Netherlands, Eastern Europe (Russia, Poland and Romania) and Southern Europe (Greece, Turkey and Egypt). On the other hand, operations in mainland France and Germany saw a decline in revenue from first-quarter 2014. The Group is continuing to deploy action plans to improve the margin performance of its operations in these markets.

2015 OUTLOOK

Organic growth is expected to remain strong in the second quarter, albeit at a slower pace than in the first given the higher basis of comparison, particularly in the United States and Europe.

In light of this, Teleperformance has confirmed its full-year objectives:

• Like-for-like revenue growth of at least 7%.
• An improvement in the EBITA margin before non-recurring items to at least 10.3%.

In addition, Teleperformance could experience a slight shift in its geographic mix during the year and see an increase in certain costs due to measures that will need to be taken to strengthen data security.

ANALYST AND INVESTOR INFORMATION MEETING

Date: Monday, April 20, 2015 at 6:15 pm CEST
Presentation materials will also be available at www.teleperformance.com.

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 2014, it reported consolidated revenue of €2,758 million ($3,665 million, based on €1 = $1.33).

The Group operates around 135,000 computerized workstations, with more than 182,000 employees across around 270 contact centers in 62 countries and serving more than 160 markets. It manages programs in 75 languages and dialects on behalf of major international companies operating in a wide variety of industries.

Teleperformance shares are traded on the Euronext Paris market, Compartment A, and are eligible for the deferred settlement service. They are included in the following indices: STOXX 600, SBF 120, Next 150, CAC Mid 60 and CAC Support Services.
Symbol: RCF - ISIN: FR0000051807 - Reuters: ROCH.PA - Bloomberg: RCF FP