Teleperformance cuts revenue target, downplays AI expectations (updated)
26/07/2023 17:50
(Adds Majorel deal details, quotes about artificial
intelligence)
July 26 (Reuters) - French call-centre operator
Teleperformance's TEPRF.PA downgraded its full-year revenue
growth target on Wednesday amid a challenging macro-economic
environment, and tempered talk surrounding its adoption of
generative AI technologies.
The outsourcing group now expects like-for-like revenue
growth, excluding pandemic-related contracts with people working
remotely, to 6% to 8% for the full year, compared to a previous
estimate of 8% to 10%. It is the French firm's second outlook
cut of the year, after an initial guidance of about 10%.
Teleperformance results were boosted during COVID-19 as
lockdowns prompted companies to move customer services online.
The French firm said it expects competition authorities to
complete their review of the planned acquisition of Dutch
competitor Majorel, which the company plans to buy in a 3
billion euros deal to accelerate digital transformation, by the
end of the year.
The company predicted in April that 20% to 30% of its
activities would be automated within the next three years with
artificial intelligence, and signed last month a $185 million
deal with Microsoft to launch its generative AI tool, TP GenAI.
Though analysts see potential for growth with
Teleperformance's AI adoption, client response has been timid,
deputy CEO Olivier Rigaudy said in a call with reporters, which
he attributes to legal and quality concerns.
"Adoption (of Teleperformance’s AI solutions) has been very
low," Rigaudy said, "generative AI offers productivity gains,
but it is not at this point able to produce the level of empathy
clients expect to be associated with their brands."
Teleperformance, which employs more than 410,000 call-centre
workers worldwide, saw its current earnings before interest,
taxes, and amortization (EBITA) increase to 577 million euros
during the first six months of the year, up from 566 million
euros in the first half of 2022, and confirmed its EBITA margin
target of 16% for the full year.
(Reporting by Victor Goury-Laffont, additionnal reporting by
Alessandro Parodi; editing by David Evans and Bernadette Baum)
((Victor.Goury-Laffont@thomsonreuters.com;))