REG-Capita PLC: £528m contract extension with European telecoms provider

CapitaAnnouncement

15/06/2021 07:05

15 June 2021
 

Capita signs £528m contract extension with major European telecoms provider

Capita plc (‘Capita’) today announces it has been awarded a customer
management contract extension with a major European telecoms provider.

Building on the current framework contract, the extension now has a minimum
volume base and is worth up to £528m in total to the order book including a
four-year contract extension beginning January 2023, a pre-priced option for a
further three-year contract extension, and a volume underpin for 2022.

Capita has been partnering with this client for more than 20 years, delivering
24/7 customer service. Capita provides support on a range of products and
services including technical assistance for mobile phone and TV products, as
well as order fulfilment support for residential and business customers.
Capita is also part of the process that supports the online chat facility by
managing outbound responses to customers.

The current contract started in 2012 and has consistently scored high net
promoter scores from both our client and their customers.

Capita employs more than 1,000 full-time, highly trained local people on this
contract, who are committed to delivering the best possible customer service
and have significant knowledge of both the product and market.

Jon Lewis, Capita’s chief executive officer, said: “The award of this
contract extension reflects our extensive experience and expertise in customer
management, our telecoms domain expertise, and the knowledge and understanding
we have developed of this client’s business and their needs over the past 20
years.

“We have continued to deliver exceptional quality of service, achieving
consistently high satisfaction scores from both our client – and their
customers – and look forward to continuing to partner with and deliver for
them.

“This is another example of Capita executing on its strategy to deliver for
its clients, creating better outcomes for clients and their customers, and
helping improve our own cash and margin performance.”
 

Notes to editors:

The total IFRS 15 transaction price (order book) is £528m. This includes
£264m for the four-year contract extension, £198m for the pre-priced option
for a further three-year contract extension and £66m of revenue for 2022
which now qualifies for inclusion in the order book.

Previous contracts have not been included within the order book as the
contractual arrangements did not meet the relevant IFRS 15 definition and were
therefore treated as framework agreements.

For more information, please contact:

Investor enquiries
Stuart Morgan
Director of Investor Relations
Tel: 07989 665484
Email: IRteam@capita.co.uk

Media enquiries
Capita external communications
Tel: 0207 654 2399
Email: media@capita.co.uk 
 

About Capita

Capita is a consulting, transformation and digital services business. Every
day our 55,000 colleagues help millions of people, by delivering innovative
solutions to transform and simplify the connections between businesses and
customers, governments and citizens. We partner with clients and provide the
insight and cutting-edge technologies that give time back, allowing them to
focus on what they do best and making people’s lives easier and simpler. We
operate in the UK, Europe, India and South Africa – and across six
divisions: Customer Management; Government Services; People Solutions;
Software; Specialist Services; and Technology Solutions.

Further information can be found at: http://www.capita.com

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