We expect to return nearly €600 million in cash to shareholders in 2023”
Three questions for Olivier Rigaudy, Deputy CEO and Groupe CFO
Revenue for the first nine months of 2023 amounted to €5,949 million, representing an increase of +6.0% on a like-for-like basis, excluding the impact of the year-on-year decline in the contribution from Covid contracts. This like-for-like growth was satisfactory, even as the economic and geopolitical environment remained uncertain.
It reflects the resilience and diversity of Teleperformance’s client portfolio by region, by industry and by service line. This performance is notably underpinned by solid gains in operations in Europe and in India, and in Specialized Services, as well as robust momentum in the social media, content moderation, financial services and healthcare sectors.
The environment is still challenging, with many US companies tightening their budgets and consumer behavior evolving post Covid. We are targeting satisfactory like-for-like revenue growth in the low end of the 6% to 8% initial guidance range, excluding the impact of lower revenue from Covid support contracts and hyperinflation in Turkey and Argentina. In addition, we confirm our EBITA margin target. Following the acquisition, Majorel will be consolidated as of November 1, 2023.
We expect to return nearly €600 million in cash to shareholders in 2023, resulting from dividends for €227 million and share buybacks for around €350 million. In August 2023, the Group launched a share buyback program for a total amount of up to €500 million. The opportunity arose from the Group’s strong cash flow generation, its unrivaled, industry-leading performance in a challenging macroeconomic environment, and its future growth prospects, none of which were properly reflected in its stock price. Teleperformance’s financial flexibility is solid. The Group has an investment capacity of around €1 billion. Following the acquisition of Majorel and completion of this share buyback program, the Group’s net debt leverage remains under control, at around 2.0x*, which will enable it to continue developing in key markets in the years ahead.
*Based on est. 2023 aggregated annual figures for Teleperformance and Majorel.
Key figures
Revenue by activity (€m)
Full-year 2023 guidance confirmed
- Like-for-like revenue growth in the low end of the +6% to +8% initial guidance range*
- EBITA margin target of around 16%
- Consolidation of Majorel from November 1, 2023
* At constant scope of consolidation and exchange rates, and excluding the impact of lower revenue from Covid support contracts and excluding the exchange rate volatility impact related to countries with hyperinflation.
Cash return to shareholders of nearly €600 million by end-2023
• Share buybacks
• Dividends
Successful issue of €1.4bn in Long-Term Bonds, more than 5.1x over-suscribed
This outcome illustrates the market’s confidence in Teleperformance’s creditworthiness and its “BBB” Standard & Poor’s rating. The proceeds of the bonds will be used to refinance the Majorel acquisition.
Two tranches were issued:
- a 5-year senior bond for €700 million with a 5.25% coupon,
- an 8-year senior bond for €700 million, with a 5.75% coupon.
Teleperformance share price (in €)* over 10 years
