France's Teleperformance H1 revenue falls 1.7% like-for-like
France's Teleperformance H1 revenue falls 1.7% like-for-like
Overview
France digital business services firm's H1 revenue fell 1.7% like-for-like, driven by Trust & Safety decline
Recurring EBITA margin stable at 13.6% despite restructuring costs and challenging macro backdrop
Company confirms 2026 financial targets as Q2 revenue shows sequential improvement over Q1
Outlook
Teleperformance confirms 2026 group LFL revenue growth target of 0.0% to 2.0%
Company expects 2026 recurring EBITA margin of around 14.6%
Teleperformance sees 2026 net free cash flow at €800-850 mln excluding non-recurring cash-outs
Result Drivers
TRUST & SAFETY DECLINE - Revenue was negatively impacted by a sharp decrease in the Trust & Safety line of business, which the company said was due to accelerated automation and increased competition
AI-POWERED SOLUTIONS GROWTH - Strong double-digit growth in AI-powered and back-office solutions helped offset declines in other areas, especially in the Americas and Europe/MEA/APAC regions
COST DISCIPLINE & RESTRUCTURING - Stable recurring EBITA margin was achieved through strict SG&A management and internal AI efficiencies, despite higher restructuring costs
Company press release: ID:nBw58WQrQa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| EUR 4.88 bln |
|
H1 EPS |
| EUR 3.70 |
|
H1 Net Income |
| EUR 216 mln |
|
H1 Adjusted EBITDA (excluding restructuring and synergy generation costs) |
| EUR 907 mln |
|
H1 Adjusted EBITA |
| EUR 662 mln |
|
H1 EBIT |
| EUR 430 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy."
Wall Street's median 12-month price target for Teleperformance SE is €63.00, about 0% even its July 29 closing price of €63.00
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 4 three months ago
Reuters Recommended Reads
July 30 - France's Capgemini H1 revenue rises on firm AI demand, lifts 2026 growth target
July 29 - France's Sopra Steria H1 revenue rises, lifts full-year organic growth target
July 29 - Cognizant Q2 revenue meets on financial services growth
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)