Teleperformance Stock Earnings Reports

Key points for investors: TP reported a solid operational H1 2025 with reported revenue > EUR 5.1bn and 1.5% like-for-like group growth, driven by resilient core services (Q2 core LFL growth 3.5% vs Q1 2.3%) and particularly strong momentum in EMEA & APAC (nearly 5–6% LFL in Q2). Specialized Services weakened materially due to the non-renewal of the UK visa (TLS/UKVI) contract and softer LanguageLine (LLS) volumes in the U.S.; the TLS-related sales impact is large (management cites ~EUR 50m of sales impact concentrated in Q2–Q3). Reported EBITDA margin was down ~30 bps versus prior year largely from FX translation effects; at constant exchange rates EBITDA margin is broadly stable and management reiterates an FY margin target of 15.0–15.1% at constant FX. Management updated FY revenue guidance to the lower end of the range to reflect specialized-services headwinds and FX; they still expect a sustainable net free cash flow before nonrecurring items of around EUR 1.0bn (but note H1 cash was affected by front‑loaded outflows: delayed VAT refunds, higher cash tax, synergy costs, increased AI/cloud spend and slightly higher CapEx). Key financial drivers: EUR 121m negative currency translation in H1 (EUR 114m in Q2 alone), net debt was increased by bond issuance (≈EUR 500m) but average borrowing cost fell ~30 bps year-on-year; a EUR 100m share buyback announced in June is largely completed. Strategy/positives: the Future Forward / TP.ai strategy is progressing (acquisitions: ZP and Agents Only completed; 250+ AI projects in H1; Anna AI recruiting use case), wins across back-office BPO, AI data services and vertical expansions were highlighted. Main investor risks remain: uncertain timing of recovery in LanguageLine and Specialized Services, significant FX translation sensitivity (management frames margin guidance at constant FX), and some front-loaded cash pressures in H1 that management expects to reverse in H2.