the Teleperformance logo on a group building. (photo credit: Adobe Stock / )
(AOF) – The Teleperformance share collapsed by 25% to 99.98 euros and posted the biggest drop in the CAC 40 index. This drop on the stock market comes as the Swedish fintech Klarna revealed the performance of a assistant based on artificial intelligence. It said it had 2.3 million conversations in its first month of operation, or two-thirds of its customer support services, and did the work of 700 full-time people. .
It is also on par with people when it comes to customer satisfaction rates.
Teleperformance had already suffered on the stock market at the end of the second half of 2023 due to fears about the impact of artificial intelligence on its activity.
AOF – LEARN MORE
Key points
– World leader in integrated digital solutions, created in 1978;
– Turnover of €8.2 billion from 2 branches: 86%, 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, visa application management, debt collection);
– Turnover distributed between linguistic zones: Spain & Latin America for 33%, Asia-Pacific for 30%, Europe & Africa for 30%, and India & Middle East for 7%;
– “Cube” business model based on 3 pillars: building business adjacencies, offering in-depth industrial expertise and accelerating the growth of complementary geographies;
– Split capital, founder Daniel Julien holding 2% of the shares and serving as chairman and general manager of the 16-member board of directors;
– Financial solidity 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 liquidity.
Challenges
– 2025 “High Touch-High Tech” strategy combining sustained internal growth and acquisitions in the service of verticalization by sector and market, targeting a turnover of €10 billion and an operating margin rate of 16%;
– “High touch-High tech” innovation strategy:
– internally: structuring through TAP (technology, data analysis, process excellence) aimed at harmonizing systems architecture and deploying expert solutions (omnichannel customer experience, predictive models, automation, etc.) and through 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, cybersecurity offer led 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 in 2040:
– 49% reduction by 2026, compared to 2019, in carbon emissions per employee, validated by the SBTi,
– focused on reducing the carbon footprint, generated 9/10
th
by electricity consumption and on the mitigation of extreme weather risks, 40% of employees working in India, Mexico and the Philippines?
– launch in June of the 1
time
green bond;
– Rise of the Indian market
;
– Voluntarism in the deployment of new sites) with maintenance of the teleworking offer (70% of the workforce)
And
improvement of the financial conditions of employees.
Challenges
– Favorable impact on turnover and operating profit of the recovery of the dollar against the Philippine peso, the Brazilian real, the Argentine peso and the euro, 45% of turnover being denominated in the American currency;
– Purchase offer from the Dutch Majorel, world leader in digital solutions for businesses, which is expected to: increase in earnings per share from the first year, before synergies estimated between 100 and 1(0 M€ per year, reaching the €2025 million target of €10 billion in revenues years ahead of schedule;
– After a gain of 2% of income on 1
er
quarter, 2023 target raised: 7% revenue growth and operating margin towards record level of 16%;
– After the €150 million share buyback program at the end of 2022, record dividend of €3.85.
Learn more about the Communication and Advertising sector
A global market that is doing well
According to Magna (Interpublic Group), growth in the global advertising market was limited to 1% year-on-year during the first quarter compared to a dynamic start to the year in 2022. However, for the full year, the company expects growth much superior, driven by digital. This performance is the result of China’s economic rebound since the end of the “zero Covid” policy. In the first quarter, advertising spending jumped 6% year-on-year in this country. Elsewhere, expected performances are lower for 2023: 4.2% growth in Europe (including 2.8% in France) and 2.5% in North America (4.2% if we exclude political advertisements falling without an election). The good results of the three world leaders (the French Publicis, the British WPP and the American Omnicom group) in the first quarter reflect this market development.