Teleperformance: meeting this Wednesday with the Ministry of Labor in Colombia – 11/14/2022 at 08:31


(AOF) – Teleperformance announced on Monday that the leaders of its Colombian subsidiary planned to meet representatives of the Ministry of Labor of this country during a meeting scheduled for Wednesday. “This meeting, set up at the initiative of Teleperformance, aims to initiate dialogue with the recently elected government in Colombia, about its operations in Colombia,” the French group said in a statement.

Since Thursday, Teleperformance shares have lost almost a third of their value following the announcement by the Colombian Ministry of Labor of the opening of an investigation after the publication of allegations of violation of trade union rights. , traumatic working conditions and low pay in Colombia.

“While no official notification has been received, Teleperformance Colombia has contacted the government and the unions in order to establish a fair and open dialogue,” Teleperformance assured. “As a responsible and law-abiding company, Teleperformance Colombia will also provide its full support to the authorities in any control they may wish to carry out,” the group added.

Teleperformance has been present in Colombia since 2009 and the acquisition of Teledatos. As of December 31, 2021, the group had 42,544 employees in the country, i.e. 10.2% of its total workforce. Only in India and the Philippines does Teleperformance employ more people than in Colombia.

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Key points

– World leader in integrated digital solutions, created in 1978;

– Turnover of €7.1 billion from 2 branches: for 89%, core services & digital integrated business services activities (customer relations, technical assistance, customer acquisition, back-office in human resources and accounting, consulting in business processes in analytics, automated systems and artificial intelligence) then “specialized services”, with better margins (interpreting, management of visa applications, debt collection);

– Turnover divided between linguistic zones: Spain & Latin America for 33%, Asia-Pacific for 30%, Europe & Africa for 30%, and India & Middle East for 7%;

– “Simpler, Faster, Safer” business model of outsourcing offers for administrations and multinationals with 3 priorities – digital transformation, consolidation of sector expertise (financial services, health and public sector) and extension of international presence ;

– Split capital, the founder Daniel Julien holding 2% of the shares and assuming the presidency and general management of the board of directors of 16 members;

– Financial strength and agility (debt rating raised), with €2.6 billion in net debt, compared to €5.2 billion in equity, €661 million in net cash, and more than €1.5 billion in cash.

Challenges

– 2025 strategy combining sustained internal growth and acquisitions in the service of verticalization by sector and by market, aiming for revenue of €10 billion and an operating margin rate of 16%;

– “High touch-High tech” innovation strategy: internal structuring by the TAP (technology, data analysis, process excellence) aimed at harmonizing the architecture of systems and deploying expert solutions (customer experience omnichannel, predictive models, automation, etc. and by the Cloud Campus platform for remote management of teams and activities and centralization of interactions with customers / externally: from 100 exclusive platforms, advice to companies in their transformation, offer cybersecurity carried out by the “Trust & Safety” teams supported by the GSOC center of the Eagle project, the global “TIEC” showroom in Silicon Valley and the X-Lab research center;

– “Citizens of the planet” environmental strategy, aiming for carbon neutrality by 2040: 49% reduction by 2026, vs 2019, in carbon emissions per employee, validated by the SBTi / focused on reducing the carbon footprint, generated at 9/10

th

electricity consumption and mitigating extreme weather risks, with 40% of employees working in India, Mexico and the Philippines;

– Launch in June 2022 of the 1

time

green bond;

– Commercial success of digital integrated business services, specializing in banking, hospitals, transport and health;

– Voluntarism in the deployment of new sites (20 to 1

er

semester, in Europe, Africa, United States, Peru and India) with maintenance of the telework offer (70% of the workforce);

– After the integration of the Americans Health Advocate (digitalized health management) and Senture, specialist in services to citizens, continued acquisitions (€1 to 2 billion by 2025).

Challenges

– Favorable impact on sales and operating profit of the recovery of the dollar against the Philippine peso, the Brazilian real, the Argentine peso and the euro, 45% of sales being denominated in the American currency;

– Reputational risk due to the quality of service for the issuance of British passports deemed lacking by the United Kingdom’s Home Office;

– After a 15% increase in revenues and a 14.5% increase in operating margin on 1

er

semester, confirmation of 2022 objectives: revenue growth above 5% (end of Covid assistance contracts) and operating margin close to 15.5%;

– 2021 dividend of €3.3.

Sector analysis Communication and Advertising

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