First of all, one should keep a close eye on the foreign exchange market and in particular on the exchange rates with certain currencies such as the Brazilian real, the American dollar, the Philippine peso and the Argentine peso, since it is in these currencies that the largest share of turnover is generated.
The development and implementation of new offers by the Teleperformance Group are also data to be closely monitored, as they help to boost turnover by broadening the target.
The innovations implemented by the Teleperformance Group, particularly in the context of research on consumer expectations, are also elements to be studied.
Of course, before selling or buying Teleperformance shares, it is important to follow the group's quarterly and annual financial results with interest, and to compare them with the targets set when the strategic plans were put in place.
We now offer you some information about Teleperformance and its business sector with a more detailed presentation of its sources of income.
The Teleperformance Group is currently the world's leading provider of outsourced services and consulting to companies dedicated to customer relationship management. More specifically, it specializes in the outsourcing of contact centers dedicated to customer relationship management.
In order to better understand the group's activities, they can be divided into two main areas according to the share of turnover they generate and in this way:
Currently, the group has more than 380,000 employees in 83 countries and offers its services in 265 languages in 170 markets.
15% of the group's turnover comes from telecoms, internet and pay-TV, 15% from healthcare and insurance, 13% from financial services, 12% from consumer electronics and technology, 10% from retail and e-commerce, 7% from public services, 6% from media and entertainment, 5% from tourism, hotels and airlines, 4% from transport and logistics, 3% from energy and 10% from other sectors.
Geographically, the group generates 32.5% of its turnover in China, the United States, Indonesia, Malaysia, the Philippines and the United Kingdom, 30% in Latin America, 25.6% in Continental Europe, the Middle East and Africa and 8.9% in Saudi Arabia, the United Arab Emirates and India.
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The French Teleperformance Group is currently the country's number one call centre operator and one of the world leaders in this sector. However, it is important to be familiar with its major competitors before buying or selling Teleperformance shares. That's why we're taking a look at the major companies in this sector whose results are likely to influence Teleperformance's share price.
is the main competitor of Teleperformance. This offshore outsourcing specialist has famous clients such as Alice, Cdiscount, Orange, Axa or L'Oréal.
is another serious competitor to Teleperformance and one of the leaders in the French market. It specializes in customer relations, telemarketing and call centers.
is Teleperformance's third largest competitor. Its clients include major media companies such as Prisma Presse, Motor Presse, M6, RTL and France Loisirs. It has 4 group divisions and 270 subsidiaries in 35 countries.
is the latest competitor of Teleperformance with a specialization in the field of tourism and clients such as Last Minute, Go Voyage or VVF.
Discover here the main partnerships set up by the Teleperformance Group.
In 2007, the French Teleperformance Group signed a strategic partnership agreement with the Chinese call centers of Shaanxi Telecom.
In 2017, the group partnered with Artificial Solutions, the leader in artificial intelligence and natural language interaction to launch an automated dialogue solution.
Also in 2017, Teleperformance announced the success of the partnership set up with Symantec's Norton program as it received the Partnership Award.
First and foremost, the Teleperformance Group's advantages include its very interesting position in its industry. Teleperformance is currently the world's number one call center company, with a global market share of over 7%. It is also the leader in this field in Europe.
We also appreciate the good distribution of the group's revenues from a purely geographical point of view. Indeed, the company's turnover is particularly well balanced between the different target zones, with 25% of turnover generated in the euro zone, 50% of turnover generated in English-speaking countries and in Asia Pacific and the remaining 25% generated in Spanish-speaking countries and in Latin America.
The Teleperformance Group also benefits from the current trend in the market in which it operates, which is growing rapidly. In fact, this sector of activity is growing at a rate of 4 to 5% annually, while only 25% of contact centers are outsourced by companies worldwide.
Of course, the Teleperformance Group's strategy is also a real asset for this company and is praised by critics and industry analysts. This strategy is based on offshore solutions for American and European clients, with teleoperator positions based in countries where the salary costs are lower.
Investors and shareholders also appreciate the Group's good visibility on future revenues, as approximately 40% of Teleperformance's inbound revenues come from long-term contracts with an average duration of 2 to 5 years. However, the outbound business is more cyclical.
Still from a strategic point of view, the Teleperformance Group is currently tending to develop more and more high value-added activities such as technical assistance and debt collection services. It is also basing its development on real expertise in the management of social resources. Teleperformance is currently one of the 150 largest employers in the world.
Another strength of the group is its strong financial flexibility, which allows it to consolidate this sector of activity over time.
Finally, the Teleperformance Group regularly buys back shares, which can be beneficial to shareholders.
It goes without saying that although Teleperformance Group seems to have the necessary strengths to face the future with confidence and boost its growth, it also has its weaknesses. Before implementing any long-term trading strategy, you should therefore also be aware of these weaknesses. Here is a summary of some of the weak points of this stock and the possible obstacles to a basic uptrend on this stock.
First of all, we know that although the global call center market benefits Teleperformance thanks to its strong presence in many countries, the company is struggling to position itself correctly in the French market, which generates less than 4% of the group's total revenue. This market seems to have been in difficulty for many months and specialists in this sector do not expect a return to growth in this sector for several years.
The Teleperformance Group's activities, although targeting various sectors of activity, remain highly exposed to the Internet and Telecommunications, which represent no less than one third of billings. It goes without saying that this represents a significant risk in the event of a sectoral crisis.
The Teleperformance Group has also seen an increase in salary costs in certain countries such as the United States, Mexico, Colombia and the Philippines, where it has many call centers. As a result, these additional costs are weighing on the company's overall profitability, as are investments in security and the development of new sites.
Finally, although Teleperformance is buying back strategic shares, as we have seen above, its shares remain low-yielding stocks that are also reaching historical highs, which hinders strategic buying. This high Teleperformance share price is also the cause of significant market sanctions at the slightest disappointment.
The Teleperformance Group currently owns and operates 341 contact centers in nearly 75 countries around the world. It operates in the United States, Canada, the United Kingdom, Brazil, Chile, India, China, Egypt, Australia, the Philippines, Mexico, Colombia, Costa Rica, the Dominican Republic, Norway, Sweden, Italy, Portugal, Greece, the Netherlands, Morocco, Tunisia, Russia, Germany, Peru and France.
If you want to know exactly the annual or quarterly financial results of the Teleperformance Group, you have the possibility to consult them directly online on the website of this company or on specialized sites. As far as the 2019 financial year is concerned, the group achieved a turnover of 5,355 million euros and a net result of 400 million euros.
Teleperformance's share price is currently listed in compartment A of the Euronext Paris market. However, the company is also included in the French benchmark CAC 40 stock market index. This means that Teleperformance is currently one of the 40 French companies with the highest capitalization. So you can find this stock very easily on online trading platforms as it is one of the best French stocks.
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