By Victor Goury-Laffont
(Reuters) -Call-centre operator Teleperformance trimmed its full-year revenue growth target for the third time this year, pointing to tougher economic conditions in the United States.
The French group now expects "about 6%" in like-for-like revenue growth, excluding contracts acquired from companies taking their operations online during the pandemic, against a previous forecast of between 6% and 8%.
Teleperformance had initially guided for growth of about 10%, before cutting its forecast in the first two quarters.
"The environment is still challenging with many US companies tightening their budgets and the evolution of consumer behavior post COVID confinement," CEO Daniel Julien said in a statement, describing a "global tendancy" towards a "slowdown" during a call with analysts.
The group started the year with a strong push towards generative artificial intelligence (AI), announcing that 20% to 30% of its activities would be automated within the next three years, before downplaying expectations due to a limited response to the new technology by clients.
"As much as we have embraced generative AI, nothing in the slowdown seems related to the technology but much more to companies being extremely conservative with their budgets," Julien said.
The business-to-business services provider announced the launch of a squeeze-out procedure to force the sale of the last remaining shares of Luxembourg-based Majorel, acquired for 3 billion euros ($3.2 billion).
"On a pro forma basis, Teleperformance will have ... more than 10 billion euros in revenue" following the acquisition, Julien said. When announcing the takeover in April, the company said it would create "an approximately $12 billion revenue digital business services leader".
Teleperformance expects the merger to lead to 100 million to 150 million euros in cost reductions, with Chief Financial Officer Olivier Rigaudy telling reporters that the cuts would take effect over the next 18 to 24 months.
($1 = 0.9307 euro)