PARIS--The Board of Directors of Teleperformance (TP) (Paris:TEP), a leading global provider of digital business services, announced strong financial results for the fiscal year 2024, reaffirming its position for accelerated growth moving forward.
During the recent meeting on February 27, 2025, the board reviewed the consolidated and statutory financial statements for 2024, declaring the company's annual revenue to be €10,280 million, which reflects a remarkable increase of 23.2% year-on-year. This growth performance showcases the company’s resilience and adaptability, especially against the backdrop of economic uncertainties.
Teleperformance’s fourth-quarter revenue totaled €2,684 million, marking a year-on-year increase of 12%, with 4% pro forma growth acceleration evident. This performance is particularly noteworthy, as it indicates sustained demand for Teleperformance's services across multiple segments, significantly contributing to the total revenue for the year.
One of the highlights for the year was the increase of the recurring EBITA margin, which reached 15.0%, up from 14.9% the previous year. This enhancement reflects operational efficiency improvements and effective cost control measures implemented across the organization. The company also reported record levels of available net cash flow, amounting to €1,084 million.
Reflecting its positive financial health and commitment to returning value to its shareholders, Teleperformance announced plans to increase its dividend to €4.20 per share and successfully completed a share buyback program valued at €500 million. This step demonstrates the confidence the board has not only in its current performance but its future growth outlook.
All these achievements were made possible through the successful integration of Majorel and strategic investments, including the acquisition of language solutions provider ZP, which was finalized on February 5, 2025. Thomas Mackenbrock, Deputy CEO of Teleperformance, stated, “We achieved our targets for 2024 and are well-positioned to accelerate our development in 2025.”
The company's outlook for 2025 remains optimistic, with like-for-like growth projected between 3% and 5%. Mackenbrock elaborated, “We will expedite the development of cutting-edge solutions, leveraging the strengths of artificial intelligence alongside our employees’ emotional intelligence.”
Teleperformance intends to allocate €100 million to develop new AI partnerships, indicating its proactive approach toward innovation and digital transformation. Already, the company signed a strategic partnership with Sanas on February 19, 2025, reinforcing its investment strategy focused on AI.
The upcoming year will also see continued strong generation of net free cash flow and initiatives aimed at deleveraging the company. Despite dealing with the non-renewal of the significant visa application management contract, Teleperformance anticipates another year of profitable growth, underscoring its preparedness to adapt to changing market dynamics.
The governance structure of Teleperformance has seen significant enhancements, with Daniel Julien stepping back as Chairman and handing over the role to Moulay Hafid Elalamy, who brings extensive experience from his tenure managing large organizations across financial services. This governance restructure, coupled with the succession planning of Mackenbrock as Julien's designated successor, reflects the company's commitment to its future leadership.
Within its operational segments, Core Services delivered revenue of €8,791 million for the full year, reflecting growth of 25.9%, demonstrating the division's sustained health and viability. Meanwhile, Specialized Services achieved €1,489 million, growing 9.3%. Each segment witnessed improvements, contributing to Teleperformance’s overall performance.
Despite the inevitability of economic fluctuations, Teleperformance's diversified portfolio and commitment to innovation and the well-being of employees positioned it favorably. With global operations spanning nearly 100 countries, the workforce remains equipped to face new challenges, and 97% of employees work within organizations certified as Great Places to Work.
Teleperformance is not only examining its financial objectives but is also reinforcing its corporate governance. Recent restructuring aims to facilitate the smooth execution of the company's strategic plans. These changes symbolize the leadership's foresight and adaptability, which are pivotal to fostering resilience amid global economic challenges.
Analysts have noted Teleperformance's potential resilience, and it appears to be adjusting its strategies to address possible setbacks due to external pressures, such as market volatility and contract renewals.
Going forward, with strategic advancements and high investment levels within AI and integrated solutions, Teleperformance is poised for what could be another successful year. With the recent financial results, the company not only affirmed its current market position but also charted out ambitious growth plans for 2025, ensuring stakeholders remain optimistic about the road ahead.