Teleperformance Reports Strong Revenue in 2007, Names New CEO

International call center giant Teleperformance this week reported a large spike in revenue for the full year of 2007 that outpaced expectations. Most of the growth is attributable to activity in North America. The group also named a new CEO and Chairman.

Paris-based Teleperformance said that revenues for 2007 totaled $2.3 billion, a 15 percent increase over 2006 and 1.5 percent higher than management guidance. Performance for the year was helped by a strong fourth quarter which saw revenues rise more than 23 percent to $715 million.

Teleperformance also announced that Christophe Allard has resigned from his position as CEO and Chairman of the Board of Directors for personal reasons. Jacques Berrebi has been unanimously appointed by the Supervisory Board as the new CEO and Chairman.

The company said that growth in 2007 was driven by expansion of services in its North American market. Teleperformance operates 293 call centers globally with 39 call centers in the U.S., five in Mexico, one in El Salvador, and 10 in Canada, with six of the Canadian centers catering to U.S. clients. In the fourth quarter of 2007, and excluding the impact of foreign exchange, revenue in North America grew 18.4 percent compared to a 9.6 percent increase in Europe. For the year, revenue in North America was up 12 percent compared to 8 percent in Europe.

Teleperformance also noted that its inbound business segment grew 2 basis points in 2007 to 71 percent of total revenue, compared to 26 percent for outbound calling services, which dropped 2 basis points.

Teleperformance did not break out revenues by service line, but the company did mention its purchase of U.S. collection giant Alliance One. Teleperformance announced last August that it was paying cash for the Exton, Pa.-based Alliance One (“French Call Center Giant Acquires Debt Collector AllianceOne,” Aug. 1, 2007), but did not disclose the purchase price. At the time, the company said that it was part of a strategic move into the accounts receivables management industry, which it already dabbled in overseas, and a push to further its reach in the U.S.