Teleperformance boosted by Asia Pacific and Majorel integration

By Mathias de Rozario and Dagmarah Mackos

(Reuters) -French office services and call centre company Teleperformance beat second-quarter profit expectations on Tuesday, buoyed by dynamic growth in its core business in Asia Pacific and integration of former rival Majorel.

Teleperformance said that revenue on a pro forma basis, reflecting the impact of its 2023 acquisition of Majorel, was up 2.4% at 2.53 billion euros ($2.73 billion), helped by contracts in the social media and travel sectors.

Teleperformance bought Majorel for 3 billion euros last year, aiming to incorporate the Dutch group's investments in digital services into its in-house GPT solutions.

Performance in the first half of the year was satisfactory, with improvement in margins and a sharp increase in cash flow, said Olivier Rigaudy, the company's finance chief and deputy CEO.

Free cash flow at the end of the quarter was up 45% at 448 million euros.

"We've managed to integrate the teams quickly," Rigaudy said, referring to the Majorel takeover. "Everything is working well from that point of view."

Teleperformance also confirmed its guidance for the full year, with pro forma revenue growth of 2-4% and an increase in its EBITA margin before non-recurring items at between 10 and 20 basis points on a pro forma basis.

($1 = 0.9259 euros)

(Reporting by Mathias de Rozario and Dagmarah MackośEditing by David Goodman)