SOURCE: TELEPERFORMANCE

November 05, 2007 12:22 ET

TELEPERFORMANCE : Information and revenues for 3rd Quarter 2007

PARIS--(Marketwire - November 5, 2007) - Information and revenues for 3rd Quarter 2007

- Strong increase in revenues : +24.8%

- Sustained organic growth : +11.1%

1. Revenues

A/ 3rd Quarter 2007 Revenues

The Teleperformance Group's consolidated revenues for the 3rd quarter of 2007 amounted to EUR 365.1 million versus EUR 292.4 million last year at the same period, an increase of +24.8% based on published data.

After deduction of the foreign exchange effects, the Group's revenues increased by +28.9%.

Excluding foreign exchange and scope of consolidation effects, the Group achieved a +11.1% organic growth rate in the 3rd quarter of 2007.

B/ Revenues over the first 9 months of the financial year 2007

The Teleperformance Group's consolidated revenues achieved over the first nine months of the financial year 2007 were EUR 1,103.5 million versus EUR 988.8 million last year at the same period, increasing by +11.6% based on published data.

After deduction of the foreign exchange effects, the Group's revenues increased by 15.1%.

Excluding foreign exchange and scope of consolidation effects, the Group achieved a +7.7% organic growth rate over the first nine months of the financial year 2007.

Distribution of Revenues per Region

+------------------------+---------+-------+--------------------+
|  (in millions of Euros)|   2007  |  2006 |Growth (in %)       |
+------------------------+---------+-------+--------------------+
|                        |         |       |Based on published  |
|                        |         |       |data                |
+------------------------+---------+-------+--------------------+
|  1st Quarter           |         |       |                    |
+------------------------+---------+-------+--------------------+
|  Europe                |    168.8|  156.0|                +8.2|
+------------------------+---------+-------+--------------------+
|  NAFTA*                |    127.5|  137.6|                -7.3|
+------------------------+---------+-------+--------------------+
|  Other                 |     40.0|   40.1|                -0.3|
+------------------------+---------+-------+--------------------+
|  Total                 |    336.3|  333.7|                +0.8|
+------------------------+---------+-------+--------------------+
|  2nd Quarter           |         |       |                    |
+------------------------+---------+-------+--------------------+
|  Europe                |    220.6|  175.9|               +25.4|
+------------------------+---------+-------+--------------------+
|  NAFTA*                |    137.0|  143.6|                -4.6|
+------------------------+---------+-------+--------------------+
|  Other                 |     44.5|   43.2|                +3.1|
+------------------------+---------+-------+--------------------+
|  Total                 |    402.1|  362.7|               +10.9|
+------------------------+---------+-------+--------------------+
|  3rd Quarter           |         |       |                    |
+------------------------+---------+-------+--------------------+
|  Europe                |    181.4|  128.1|               +41.6|
+------------------------+---------+-------+--------------------+
|  NAFTA*                |    153.4|  135.4|               +13.3|
+------------------------+---------+-------+--------------------+
|  Other                 |     30.3|   28.9|                 4.8|
+------------------------+---------+-------+--------------------+
|  Total                 |    365.1|  292.4|               +24.8|
+------------------------+---------+-------+--------------------+
|  At September 30       |         |       |                    |
+------------------------+---------+-------+--------------------+
|  Europe                |    570.8|  460.0|               +24.1|
+------------------------+---------+-------+--------------------+
|  NAFTA*                |    417.9|  416.6|                +0.3|
+------------------------+---------+-------+--------------------+
|  Other                 |    114.8|  112.2|                +2.3|
+------------------------+---------+-------+--------------------+
|  Total                 |  1,103.5|  988.8|               +11.6|
+------------------------+---------+-------+--------------------+

+------------------------+--------------------+
|  (in millions of Euros)|                    |
+------------------------+--------------------+
|                        |On a comparable     |
|                        |basis**             |
+------------------------+--------------------+
|  1st Quarter           |                    |
+------------------------+--------------------+
|  Europe                |                +7.5|
+------------------------+--------------------+
|  NAFTA*                |                +7.1|
+------------------------+--------------------+
|  Other                 |                +4.7|
+------------------------+--------------------+
|  Total                 |                +7.0|
+------------------------+--------------------+
|  2nd Quarter           |                    |
+------------------------+--------------------+
|  Europe                |                +5.6|
+------------------------+--------------------+
|  NAFTA*                |                +5.5|
+------------------------+--------------------+
|  Other                 |                +2.3|
+------------------------+--------------------+
|  Total                 |                +5.2|
+------------------------+--------------------+
|  3rd Quarter           |                    |
+------------------------+--------------------+
|  Europe                |                +9.4|
+------------------------+--------------------+
|  NAFTA*                |               +15.2|
+------------------------+--------------------+
|  Other                 |                +0.9|
+------------------------+--------------------+
|  Total                 |               +11.1|
+------------------------+--------------------+
|  At September 30       |                    |
+------------------------+--------------------+
|  Europe                |                +7.4|
+------------------------+--------------------+
|  NAFTA*                |                +9.4|
+------------------------+--------------------+
|  Other                 |                +2.8|
+------------------------+--------------------+
|  Total                 |                +7.7|
+------------------------+--------------------+

* North America and Mexico

** Excluding foreign exchange and scope of consolidation effects

Distribution of Revenues per Activity

+-----------------+------+------+
|      (in %)     |  2007|  2006|
+-----------------+------+------+
|  At March 31    |      |      |
+-----------------+------+------+
|  Inbound        |    68|    66|
+-----------------+------+------+
|  Outbound       |    27|    28|
+-----------------+------+------+
|  Other*         |     5|     6|
+-----------------+------+------+
|  Total          |   100|   100|
+-----------------+------+------+
|  At June 30     |      |      |
+-----------------+------+------+
|  Inbound        |    69|    66|
+-----------------+------+------+
|  Outbound       |    27|    28|
+-----------------+------+------+
|  Other*         |     4|     6|
+-----------------+------+------+
|  Total          |   100|   100|
+-----------------+------+------+
|  At September 30|      |      |
+-----------------+------+------+
|  Inbound        |    70|    66|
+-----------------+------+------+
|  Outbound       |    26|    28|
+-----------------+------+------+
|  Other*         |     4|     6|
+-----------------+------+------+
|  Total          |   100|   100|
+-----------------+------+------+
+-----------------+------+------+

* Mainly market research and training operations

The Inbound activity increased by 4 percent and now stands for 70% of the Group's total revenues versus 66% at September 30, 2006, at the expense of Outbound operations (-2%) and other activities (- 2%).

Revenues from Inbound activities strongly increased as a result of Inbound-oriented company acquisitions completed over the last 12 months and as a result of the sale of our market research operations in Europe during the second semester of 2006.

2. Business evolution

2.1 - 3rd Quarter 2007 Activity

To assess the Teleperformance Group's activity over the 3rd quarter of 2007, the following factors must be taken into consideration:

A/ Foreign exchange effects

The negative impact of foreign exchange effects mainly results from the rise of the Euro against the U.S. Dollar.

This impact amounted to EUR 11.9 million in the 3rd quarter 2007 and reached EUR 35 million over the first nine months of the financial year 2007.

B/ Scope of consolidation effects

The main transactions impacting the scope of consolidation and activity of the Group over the first nine months of 2007 are as follows:

- Transactions completed in 2006

Europe:

- Acquisition of the SCMG group in Switzerland, which was consolidated as of December 1, 2006, enabling us to strengthen our position in this region of Europe;

- Sale of European market research operations during the 2nd semester 2006 in France, Italy and Germany;

- Transactions completed over the first 9 months of the financial year 2007

Europe:

- Acquisition of 100% interest in the German group Twenty4help Knowledge Service AG, which was consolidated as of April 1, 2007.

- Acquisition of 62% interest in the French company The Phone House Services Telecom, which was consolidated as of May 1, 2007.

In the NAFTA region:

- Sale of the US company Noble Systems Corp., which was deconsolidated as of January 1, 2007.

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

Changes in the Group's scope of consolidation resulted in:

- A positive impact of EUR 46.9 million over the 3rd quarter 2007, including EUR 38.4 million in Europe and EUR 8.5 million in the NAFTA region.

After adjusting the scope of consolidation effects and on a comparable basis, the Group's revenues for the 3rd quarter of 2006 amounted to EUR 339.3 million.

- A net positive impact of EUR 68.8 million over the first nine months of the financial year 2007. It may be split as follows :

+ 71.8 million in Europe and

- 3.0 million in the NAFTA region.

After adjusting the scope of consolidation effects and on a comparable basis, the Group's revenues over the first nine months of the year 2006 amounted to EUR 1,057.6 million.

C/ Base effect

It has to be also noted that the Group achieved a strong organic growth rate in the 3rd quarter of 2007, which was higher than 11% and very close to that of last year at the same period (+11.5%).

2.2 - Outlook

The strong activity experienced by Teleperformance over the 3rd quarter of 2007 was in line with the annual objectives the management team had revised upwards when publishing the Group's half-year financial statements.

During the financial meeting which will take place on November 21, 2007, Teleperformance will provide a detailed presentation of its objectives for 2007, as well as its outlook for 2008.

3. Key transactions and events during the last quarter

The major events which occurred in the 3rd quarter 2007 and impacted the Group's business and financial situation were as follows:

3.1 Acquisition of a leading Accounts Receivable Management company in the United States

On August 1, 2007 Teleperformance proceeded with a cash acquisition, through its subsidiary TP USA, of 100% of the share capital of Alliance One, a leading US Accounts Receivable Management company.

Alliance One is headquartered in Minneapolis, Minnesota. The company's 2006 revenues were in excess of US$ 115,000,000 and it operates with 2,200 workstations in 12 contact centers in the US, Canada, and Jamaica.

Alliance One is exclusively dedicated to debt collection and serves a broad, diversified portfolio of blue chip clients from various business sectors: financial institutions, government, enterprises and healthcare.

Teleperformance already provides Accounts Receivable Management services to our clients in several European countries as well as in Mexico, Brazil and Argentina.

This acquisition gives the Group the ability to enter the Accounts Receivable Management market in the US and reflects Teleperformance's global strategic commitment to provide a fully integrated chain of CRM services to its clients on a worldwide basis: marketing, sales, after-sales, customer service, technical support and debt collection.

The company is consolidated with effect from August 1, 2007.

3.2 Teleperformance has strengthened its partnership with SFR Service Client

The take-over project for two SFR Service Client contact centers located in Lyon and Toulouse, which was announced on May 14, has been effective since August 1.

The project marks the strengthening of this strategic partnership between SFR Service Client and Teleperformance which, based on more than 10 years of cooperation, already encompasses all of SFR's key consumer customer relationship areas: customer acquisition and service, cross and up-selling programs, retention, and distribution network support.

This transaction was perfectly in line with Teleperformance's growth strategy and its aim to consolidate its position as the leading player on the French market.

3.3 Termination of the business relationship with Brasil Telecom

On August 17, 2007, Brasil Telecom announced its decision to cancel by anticipation its service contract with our Brazilian subsidiary, which should have terminated on January 2009.

The effective termination of the operations run by Teleperformance in Brazil on behalf of Brasil Telecom should take place end of 2007.

The implementation of restructuring measures and of a development strategy should help Teleperformance remain one of the key players on the Brazilian market.

About Teleperformance:

Teleperformance (Euronext: FR 0000051807), the world's co-leading provider of outsourced CRM and contact center services, operates under various brands, such as Teleperformance for customer acquisition, customer service and customer growth programs, as well as TechCity Solutions and Cash Performance respectively specializing in technical support and debt collection. In 2006, the Teleperformance Group achieved EUR 1,385 million revenues (US$1,824 million - exchange rate at December 31, 2006: EUR 1 < > = US$1.317).

The Group operates nearly 62,000 computerized workstations, with more than 70,000 employees (Full-Time Equivalents) across 293 contact centers in 45 countries and conducts programs in more than 60 different languages and dialects on behalf of major international companies operating in various industries.

For more information, visit: www.teleperformance.com

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Contact Information


  • Teleperformance Contacts:
    (Email Contact)

    Michel PESCHARD
    Corporate Secretary
    Board Member
    +33-1.55.76.40.80

    Nadine DAVESNE
    Press Relations
    +33-1.46.67.63.44
    +33-6.07.15.05.43