The past few months have been particularly eventful for Teleperformance Group in an environment full of challenges: an economic situation weakened by the banking crisis in the United States, the news surrounding the ChatGPT tool and its impact on our businesses, the growing need to protect consumers on social media through content moderation services, and the ongoing consolidation of the sector. Teleperformance continues to demonstrate the resilience of its profitable growth model, its capacity for innovation, and the strength of its TP Cube development strategy.
On April 25, we published solid first-quarter 2023 revenue, in line with 2022: a like-for-like* increase in revenue of almost +9%, heralding another year of significant growth and margin gains. This is reflected in new annual objectives: recurring like-for-like revenue growth between +8% and +10% despite the unfavorable impact on growth of longer time to- signature for major contracts in the United States and the development of offshore activities, and a 50 basis-point increase in EBITA margin to 16%.
On April 26, Teleperformance announced its proposed acquisition of Majorel for €3 billion. Not only does the Majorel acquisition fit with our TP Cube strategy, it also marks an assertive step toward opportunity. Majorel is a high-quality, solid, profitable, and mostly European market-focused company with a great growth profile. The company is performing well in the third and fourth biggest outsourcing markets worldwide (Germany and France) where Teleperformance has a relatively small presence, as well as in Asia and Africa, markets with strong potential. The acquisition of Majorel is accretive for Teleperformance shareholders from the first year and will generate €100-150 million in cost synergies plus substantial revenue synergies.
"Dynamic business services companies like Teleperformance thrive with advancements in technology"
Dynamic business services companies like Teleperformance thrive with advancements in technology. In the past 10 years, the integration of bots, RPA, and AI has directly contributed to Teleperformance’s sustained growth improved profitability. ChatGPT will help us to further increase productivity, and improve the accuracy of our solutions, and both increase employee and client satisfaction. Like previous technologies, we believe that ChatGPT will open up additional opportunities for Teleperformance. In fact, our AI teams are already using this technology to help us to Deliver Better and Sell More.
ESG best practices are being rolled out to support this long-term journey. In this respect, Teleperformance has signed a worldwide partnership with the international trade union federation UNI Global Union to promote social dialogue and freedom of association in our operations. This commitment was renewed at the first worldwide convention between UNI Global Union and Teleperformance in Bucharest last March, and recently formalized by signing an agreement with the Ultraclaro union in Colombia.
On behalf of all the Teleperformance teams, we would like to thank you, as shareholders, for the support and confidence expressed through your votes at our Annual General Meeting held on April 13. Your votes are also key to helping us through the current difficult period of high volatility in the financial markets. By communicating better and more often, and by learning from our mistakes while capitalizing on our successes, we are confident that our stock valuation will soon reflect our value-generating business model which remains intact.
Daniel Julien, Chairman, and Chief Executive Officer
* excluding Covid contracts