SOURCE: TELEPERFORMANCE

August 06, 2008 11:52 ET

TELEPERFORMANCE: First half of 2008 Revenue

First half of 2008: Revenue increase exceeding objectives

PARIS--(Marketwire - August 6, 2008) -


- Strong growth based on published data: +19.1% vs. 15%

- Sustained organic growth: +11.6% vs. 8.5%

Maintain of the annual objectives in spite of a very challenging economic environment in the 2nd half of the year

1. Figures

- Revenues achieved over the first half of 2008

The Teleperformance Group's consolidated revenues achieved over the first half of the financial year 2008 were EUR 879.8 million versus EUR 738.4 million over the same period last year, increasing by +19.1% based on published data and exceeding the 15% objective the Group had set itself for the first half of 2008.

If not considering the foreign exchange effect, the Group's revenues increased by +26.5%.

Excluding foreign exchange and scope of consolidation effects, the Group reported an organic growth rate of +11.6% over the first half of 2008, exceeding the 8.5% objective announced in May during the last financial meeting.

- Revenues achieved over the 2nd quarter 2008

Teleperformance's good results mainly reflect its sustained business activity over the 2nd quarter 2008, achieving consolidated revenues of EUR 468.1 million, compared to EUR 402.1 million over the same period last year, which represents a +16.4% increase based on published data.

If not considering the foreign exchange effect, the Group's revenues increased by +23.6%.

Excluding foreign exchange and scope of consolidation effects, the Group reported an organic growth rate of +14.6% in the 2nd quarter 2008, versus 5.2% over the same period in 2007.

The Group's revenues were distributed per region as follows:

+---------------------+------+------+---------------+----------------+
|                     |      |      | Growth in %   |                |
+---------------------+------+------+---------------+----------------+
|In millions of euros | 2008 | 2007 |      Based on |On a comparable |
+---------------------+------+------+---------------+----------------+
|                     |      |      |published data |        basis** |
+---------------------+------+------+---------------+----------------+
|Over the 1st quarter |      |      |               |                |
+---------------------+------+------+---------------+----------------+
|Europe               |221.7 |168.8 |         +31.3 |          +10.7 |
+---------------------+------+------+---------------+----------------+
|NAFTA*               |166.5 |127.5 |         +30.6 |          +17.8 |
+---------------------+------+------+---------------+----------------+
|Rest of the Word     | 23.5 | 40.0 |         -41.2 |          -39.7 |
+---------------------+------+------+---------------+----------------+
|Total                |411.7 |336.3 |         +22.4 |           +8.5 |
+---------------------+------+------+---------------+----------------+
|Over the 2nd quarter |      |      |               |                |
+---------------------+------+------+---------------+----------------+
|Europe               |256.9 |220.6 |         +16.5 |          +17.7 |
+---------------------+------+------+---------------+----------------+
|NAFTA*               |182.7 |137.0 |         +33.2 |          +23.2 |
+---------------------+------+------+---------------+----------------+
|Rest of the Word     | 28.5 | 44.5 |         -36.1 |          -33.5 |
+---------------------+------+------+---------------+----------------+
|Total                |468.1 |402.1 |         +16.4 |          +14.6 |
+---------------------+------+------+---------------+----------------+
|At June 30           |      |      |               |                |
+---------------------+------+------+---------------+----------------+
|Europe               |478.6 |389.4 |         +22.9 |          +14.3 |
+---------------------+------+------+---------------+----------------+
|NAFTA*               |349.2 |264.5 |         +32.0 |          +20.6 |
+---------------------+------+------+---------------+----------------+
|Rest of the Word     | 52.0 | 84.5 |         -38.5 |          -36.4 |
+---------------------+------+------+---------------+----------------+
|Total                |879.8 |738.4 |         +19.1 |          +11.6 |
+---------------------+------+------+---------------+----------------+
+---------------------+------+------+---------------+----------------+

* North America and Mexico

** Excluding foreign exchange and scope of consolidation effects

The Group's revenues were broken down by business segment as follows:

+-------------------+-----+-----+
|       in %        |2008 |2007 |
+-------------------+-----+-----+
|At March 31        |     |     |
+-------------------+-----+-----+
|Inbound services   |  69 |  68 |
+-------------------+-----+-----+
|Outtbound services |  27 |  27 |
+-------------------+-----+-----+
|Other*             |   4 |   5 |
+-------------------+-----+-----+
|Total              | 100 | 100 |
+-------------------+-----+-----+
|At June 30         |     |     |
+-------------------+-----+-----+
|Inbound services   |  72 |  69 |
+-------------------+-----+-----+
|Outtbound services |  24 |  27 |
+-------------------+-----+-----+
|Other*             |   4 |   4 |
+-------------------+-----+-----+
|Total              | 100 | 100 |
+-------------------+-----+-----+
+-------------------+-----+-----+

* mainly standing for market research

2. Business developments

To assess the Teleperformance Group's activity over the 2nd quarter 2008, the following factors must be taken into consideration:

- Foreign exchange effect

The negative foreign exchange effect amounted to EUR 28.6 million. Such effect mainly resulted from the rise of the euro against most currencies, and especially the U.S. Dollar and the Pound Sterling.

The foreign exchange effect over the 2nd quarter 2008 may be broken down as follows:

-NAFTA: -EUR 23.7 million

-Europe: -EUR 3.7 million

-Rest of the World: -EUR 1.2 million

The foreign exchange effect over the 1st half of 2008 eventually represented a negative impact of EUR 54.3 million and may be broken down per region as follows:

-NAFTA: -EUR 45.8 million

-Europe: -EUR 6.8 million

-Rest of the World: -EUR 1.7 million

- Scope of consolidation effect

The scope of consolidation effect resulted in a net positive impact of EUR 31.3 million over the 2nd quarter 2008.

The external growth transactions impacting the 2nd quarter 2008 business results were mainly completed in 2007 in the following regions:

Europe:

- Acquisition of the French company The Phone House Services Telecom, which was consolidated as of May 1, 2007.

NAFTA region:

- Acquisition of the US company Alliance One, which was consolidated as of August 1, 2007.

- Acquisition of the Mexican company Hispanic Teleservices, which was consolidated as of December 1, 2007.

Moreover, the Group completed the sale of its last two Marketing Services operations specializing in training activities, with effect from January 1, 2008.

The scope of consolidation effect over the first half of 2008 represented a net positive impact of EUR 98.2 million and may be split up as follows:

-NAFTA: +EUR 63 million

-Europe: +EUR 35.2 million

- Base effect

The Group's business activity over the 2nd quarter 2008 was very sustained throughout the network and especially in the European and NAFTA regions, which reported very strong organic growth rates, i.e., +17.7% and +23.2% respectively.

Teleperformance benefited from a very positive base effect in both regions whereas in the 2nd quarter 2007 they had reported low organic growth rates of 5.3% and 5.5% respectively.

Furthermore, the termination of the Brazil Telecom contract at the end of November 2007 strongly impacted the 2nd quarter 2008 business in the Rest of the World region, which reported a decrease of revenues of 33.5%.

Finally, in the 2nd quarter 2008 the organic growth rate was +14.6% throughout the network, versus 5.2% at the same period in 2007.

At the end of the 1st semester 2008 the Teleperformance Group reported an organic growth rate of 11.6% exceeding the 8.5% objective the Group had set itself for the first half of 2008.

3. Annual objectives for 2008 maintained in spite of a challenging economic environment in the 2nd half of the year

The challenging economic environment impacts some of Teleperformance clients' volume forecasts, therefore providing limited visibility for the 2nd half of the year.

However, considering the business results achieved in the first half of 2008, the Group's management team still remains confident that the Group will reach its annual revenue objectives, as announced during the last financial meeting which was held on May 21.

4. Key dates

The Group's half-year results will be published in the next press release to be sent out on August 29, 2008.

About Teleperformance:

Teleperformance (NYSE Euronext: FR 0000051807), the world's leading provider of outsourced CRM and contact center services, has been serving companies around the world rolling out customer acquisition, customer care, technical support and debt collection programs on their behalf. In 2007, the Teleperformance Group achieved EUR 1.593 billion revenues (US$2.182 billion - exchange rate at December 31, 2007: EUR 1 < > = US$1.37). Last November, the Teleperformance management team announced 2008 revenue objectives at around EUR 1.755 billion, increasing by +10% compared to 2007 (US$2.580 billion at: EUR 1 < > = US$1.47).

The Group operates nearly 75,000 computerized workstations, with more than 83,000 employees (Full-Time Equivalents) across 281 contact centers in 45 countries and conducts programs in 66 different languages and dialects on behalf of major international companies operating in various industries.

For more information, visit: www.teleperformance.com

This information is provided by HUGIN

Contact Information

  • Teleperformance Contacts:
    (Email Contact)

    Michel PESCHARD
    Finance Managing Director
    Board Member
    +33-1.55.76.40.80

    LT Value - Investors Relations and Corporate Communication
    Nancy Levain
    Email Contact +33-1.44.50.39.30
    +33-6.72.28.91.44