TP's Financial Momentum Intensifies: Strong 2024 Results Signal Accelerated Growth Trajectory

Record Performance Validates Strategic Direction Amid AI Investment Surge

Teleperformance has delivered impressive 2024 financial results that underscore the company’s operational scaling and strategic positioning in the digital business services sector. The Board reviewed consolidated financials showing €10,280 million in annual revenue, representing substantial growth momentum that positions the group for continued expansion into 2025.

Revenue Expansion Reflects Market Strength

The fiscal year closed with Q4 2024 generating €2,684 million in revenue, marking a notable acceleration in the final quarter. When adjusted for the Majorel acquisition integration, pro forma growth stood at +4.0%, demonstrating improved business momentum compared to earlier periods in the year. Full-year performance reached €10,280 million, with pro forma growth of +2.6%, reflecting the company’s ability to maintain trajectory despite macroeconomic complexities.

This expansion was broad-based across the portfolio. Core Services drove much of the growth, with Q4 pro forma acceleration reaching +3.8% compared to +0.6% in the first nine months—a shift that indicates strengthening client demand across public services, social media, and adjacent verticals. Specialized Services maintained robust momentum with +10.1% pro forma growth, powered primarily by LanguageLine Solutions’ high-margin interpreting business and the accelerating impact of cross-company selling synergies.

Profitability Expansion Underscores Operational Excellence

Recurring EBITA reached €1,537 million, translating to a 15.0% margin versus 14.9% in the prior year. This improvement occurred despite headwinds from currency fluctuations and selective investments in sales force expansion. The Majorel integration contributed meaningfully through €94 million in cost synergies, particularly concentrated in the second half.

The margin improvement was not uniform across segments. Core Services margins contracted slightly to 12.4% from 12.6% pro forma, primarily due to negative foreign exchange translation effects in Latin America and strategic hiring investments in North America. However, Europe, MEA & Asia-Pacific delivered impressive margin expansion to 11.2% from 9.7%, significantly aided by synergy realization. Specialized Services maintained elevated profitability at 30.0%, with LanguageLine Solutions showing particular strength following resolution of interpreter capacity constraints that had impacted 2023.

Cash Generation Reaches Historic Levels

Net free cash flow surged to €1,084 million, up 33.5% year-over-year and representing a company record. This exceptional generation supported capital deployment including €231 million in dividends and €184 million in share repurchases as part of a €500 million authorized buyback program completed during the year.

The strong cash position enabled meaningful deleveraging. Net debt declined to €3,890 million from €4,558 million despite the Majorel acquisition financing, improving the net debt-to-recurring EBITDA ratio to 1.9x. Working capital optimization contributed positively, with the consolidated working capital requirement generating €103 million inflow.

Strategic Capital Allocation and AI Positioning

Management unveiled an ambitious €100 million investment program in AI partnerships for 2025, signaling confidence in technology’s transformative potential. The first partnership, announced with Sanas, underscores the commitment to real-time speech understanding and related capabilities. This investment framework sits within a broader upskilling initiative that deployed 60,000+ training programs in emotional intelligence and AI competencies during 2024.

The company also advanced its Specialized Services expansion through the February 2025 completion of the ZP acquisition, a market leader in communication services for deaf and hard-of-hearing communities with projected 2024 sales of US$230 million.

2025 Outlook Reflects Confident Growth Posture

Management targets like-for-like revenue growth between +3% and +5% in 2025, exclusive of an anticipated contract non-renewal in visa application management (which impacts approximately one percentage point). Including this headwind, growth guidance stands at +2% to +4%.

EBITA margin is projected to expand 0 to +10 basis points, with continued strong net free cash flow generation and progressive deleveraging anticipated. The second half is expected to contribute disproportionately to annual results as new contract ramps accelerate, particularly in public services and related sectors.

Governance Enhancement Supports Execution

Concurrent with financial results, governance strengthened through the appointment of Moulay Hafid Elalamy as Chairman and Thomas Mackenbrock as Deputy CEO, positioning the company’s leadership to execute the multi-year AI and growth strategy. The succession planning process remains aligned with an established timeline. Two additional board nominees bring AI expertise and international experience, further reinforcing governance capability.

Financial Ratios and Capital Metrics

The dividend per share increased to €4.20 from €3.85, reflecting a 48% payout ratio versus 38% previously. Diluted earnings per share reached €8.71 on a reported basis, with adjusted diluted EPS of €13.44, up from €12.39 in 2023. Standard & Poor’s maintained the company’s “BBB” investment-grade rating with stable outlook, enabling successful completion of a €500 million bond issue in January 2025 at 4.25% coupon maturity 2030.

Segment Performance Dynamics

Core Services demonstrated uneven regional performance. The Americas grew +0.1% pro forma in Q4 after -1.1% in the first nine months, reflecting Latin American stabilization and continued offshore expansion in India. Europe, MEA & Asia-Pacific accelerated sharply to +7.3% in Q4 versus +2.2% in 9M, driven by Asia-Pacific strength, UK public services contract starts, and multilingual hub productivity.

Specialized Services faced a partial headwind from the noted visa services contract non-renewal, which offset strength elsewhere in the portfolio. LanguageLine Solutions’ business model demonstrated resilience with improved margin performance following 2023’s interpreter capacity challenges.

Strategic Execution Quality

The integration of Majorel, completed in late 2023, continued to execute to plan. Management achieved synergy realization ahead of schedule in the second half, with integration-related reorganization costs of €58 million reflecting controlled expense management. The acquisition added material scale particularly in Europe and emerging markets while diversifying the service portfolio.

Best Employer certifications expanded to 69 countries representing 97% of group workforce, reinforcing the company’s positioning as an employer of choice in a talent-constrained environment.

Forward-Looking Framework

Teleperformance’s strategic narrative centers on leveraging technology integration (particularly AI), geographic diversification, and specialized service expansion to drive sustainable profitable growth. The €100 million AI partnership investment represents a material commitment that executives believe will differentiate client solutions and support market share gains in an increasingly competitive environment.

The 2025 guidance, while acknowledging specific contract headwinds, reflects management confidence in underlying demand dynamics and the company’s ability to commercialize technological innovation. With record cash generation, strengthened balance sheet metrics, and governance aligned for execution, the company appears positioned to deliver on its strategic objectives while returning increasing capital to shareholders.