Teleperformance: Deutsche Bank upgrades

(AOF) – Deutsche Bank maintained its Buy recommendation on Teleperformance, while raising its target price from 404 to 425 euros. According to the German bank, the company “offers an essential and increasingly complex service to its customers, benefiting from broad-based structural growth”. “With a defensive growth profile, an increasingly flexible cost base and strong pricing power, we believe Teleperformance offers a good place to hide,” Deutsche Bank adds.


Key points

– World leader in integrated digital solutions, created in 1978;

– Turnover of €5.7 billion from 2 branches: for 89%, core services & Digital Integrated Business Services activities (customer relations, technical assistance, customer acquisition, back-office in human resources and accounting, consulting in business processes in analytics, automated systems and artificial intelligence) then “specialized services”, with better margins (interpreting, management of visa applications, debt collection);

– 4 major linguistic areas: English-speaking area & Asia-Pacific for 35%, Europe & Africa for 26%, Spain & Latin America for 30% and India & Middle East for 9%;

– “Simpler, Faster, Safer” business model for administrations and multinationals with 3 strengths: “go-to-market” (coordinated approach to customers), expansion in Asia and investments in cybersecurity;

– Split capital, the founder Daniel Julien holding 2% of the shares and assuming the presidency and general management of the board of directors of 17 members;

– Financial strength and agility (debt rated BBB), with €5.2 billion in equity and more than €1.5 billion in cash.


– 2020-2022 strategy centered on sustained internal growth, particularly in the BRICs, Mexico, Indonesia and Turkey, aiming for a turnover of at least 7 billion

and an operating margin rate of 14.5%;

– Innovation strategy structured by the 700 members of TAP (technology, analysis, process): internally: harmonization of system architecture, deployment of expert solutions (omnichannel customer experience, predictive models, automation, business process consulting) / externally: advice to companies in their transformation, cybersecurity with the GSOC center of the Eagle project, operational since June, global “TIEC” showroom in Silicon Valley;

– “Citizens of the planet” environmental strategy: 49% reduction by 2026, vs 2019, in carbon emissions per employee, validated by the SBTi / focused on reducing the carbon footprint, generated at 9/10


by electricity consumption and on the mitigation of extreme weather risks, 40% of employees working in India, Mexico and the Philippines;

– Benefits from the launch of Digital Integrated Business Services, specializing in banking, hospitals, transport and health, and the “TP Cloud Campus” for telework management;

– African expansion in 2020-2022;

– Integration of the American Health Advocate (digitized health management).


– Negative impact on turnover of the Philippine peso/dollar, Brazilian real and Argentinian peso/dollar parities, 45% of turnover being denominated in the American currency;

– At the end of September 2021, turnover up 31% on 1


quarter and net profit quadrupled.

Advertising: offensives in “retail media”

This segment of the advertising market consists, for e-merchants, in monetizing their online advertising space and their customer data. It enjoys strong growth. In recent months, Havas and Publicis have accelerated their positioning in this area. Thus Havas launched “Ad to Basket”, an entity dedicated to “retail media”. As for Publicis, it took over CitrusAd, an Australian adtech focused on “retail media” and mainly established in the United States, for more than 100 million dollars. This operation allows Publicis to refine its knowledge of commercial sites, which gives credibility to its expertise with its customers.


At last


Criteo, the French group focused on online advertising launched in 2005, has also embarked on the consolidation of the segment by taking over an English firm for 380 million dollars.

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Teleperformance: Deutsche Bank upgrades

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