French call center TP lowers revenue outlook on US challenges

By Hugo Lhomedet TP slashed its full-year revenue and profit guidance on Tuesday, as a "highly volatile business environment" in the United States hit its language services and recruitment outsourcing businesses. The French call center operator, which was previously called Teleperformance, now expects 2025 revenue growth of between 1% and 2%, down from a prior forecast of between 2% and 4%. It also cut its operating margin target to between 14.7% and 15% from between 15% and 15.1%. WHY IT'S IMPORTANT  The company, like other call center operators, faces competition from artificial intelligence that can replace human agents. Analysts and investors have questioned the group's ability to maintain growth during a period of AI disruption. The firm's LanguageLine Solutions, which provides interpretation services to government agencies, has been hit by reduced demand and payment delays from the U.S. government shutdown. KEY QUOTE(S) When asked the U.S. government shutdown, deputy CEO Thomas Mackenbrock said: "One, we do provide government services in the US that are affected. Secondly, our specialized services business, in particular LanguageLine, provides services also to US government institutions. And, thirdly, if you look at the latest forecast from the Congressional Budget Office, you see they're also expecting an impact on consumer sentiment," "To make it simple, our clients are cautious and we need to be cautious as well," CFO Olivier Rigaudy said in a call with journalists. CONTEXT The company exited France's blue chips index CAC40 in September. TP has cut its revenue growth outlook in July to the lower end of between 2% and 4% previously guided. BY THE NUMBERS TP reported third quarter revenue of 2.51 million euros ($2.92 billion). It has cut its free cash flow target to 900 million euros, down from one billion euros previously guided. ($1 = 0.8575 euros) (Reporting by Hugo Lhomedet; Editing by Matt Scuffham)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)