” I am pleased with the profitability enhancement in our core CRM business. Addressing the challenges we continue to face in
Q2 2014 financial highlights
· Net revenue €152.0 million, a 8.7% decrease compared to Q2 2013 (€166.5 million). Adjusted for exchange rate impact as well as for divested and closed operations, revenue fell by approximately 2.9% · Gross margin 19.3% a 0.3 percentage point increase compared to Q2 2013 (19.0%) · EBIT €1.4 million compared to €2.9 million in Q2 2013. EBIT was impacted by a €1.1 million cost related to the planned re-domiciliation, and by a €1.3 million cost due to divestments of CMS units · EPS -
· Net revenue €312.1 million, a 7.4% decrease compared to the same period 2013 (€336.9 million). Adjusted for exchange rate impact as well as for divested and closed operations, revenue increased by approximately 0.2% · Gross margin 20.0%, flat compared to the same period 2013 (20.0%) · EBIT €6.8 million compared to €8.9 million in the same period 2013 · EPS
· Divestments and closures had a significant impact on reported revenue in the quarter · EBIT margin in core CRM business improved by 0.9 percentage points in Q2 2014, from 1.6% to 2.5%, excluding the one-time cost for the re -domiciliation · Strengthening performance in
Comments from the President and CEO
While I am pleased with the profitability improvement in our core business, strengthening our performance in
Transcom’s primary focus area for 2014 is to strengthen margins. We have consequently focused on optimizing capacity utilization in our existing contact centers rather than investing in new capacity for expansion. I am pleased to see the margin improvements we have achieved in our
Revenue impacted by divestments in the CMS business and lower call volumes
On a like-for-like basis, adjusting for the effects summarized below, revenue fell by 2.9% compared to Q2 2013. The reported €14.5 million revenue decrease compared to Q2 2013 is comprised of:
· €-5.6 million: divestments and site closures that Transcom completed during the year in order to exit non-core areas and focus on the core CRM business in prioritized geographies. The most significant actions impacting the revenue comparison are the sale of a number of CMS units, the sale of our Belgian operations, and the closure of the Valdivia site in
Improved profitability in our core customer care business
The EBIT margin in our core CRM business improved by 0.9 percentage points, from 1.6% to 2.5%, excluding the one-time cost for the re -domiciliation. This was driven by improvements in the
Reported EBIT for the Group in Q2 2014, including the CMS business, amounted to €1.4 million (€2.9 million in Q2 2013). EBIT this quarter was impacted by a €1.1 million cost related to the re-domiciliation, and a €1.3 million capital loss as a result of divestments (CMS Poland, CMS Czech and CMS Austria). SG&A costs as a proportion of revenue have decreased, mainly due to divestments and cost savings, excluding the cost related to the re-domiciliation.
The divestment of CMS Austria (subject to regulatory approval) completes the strategic review of our CMS business. A number of country units have already been divested. Other units, which are characterized by services that can be efficiently delivered within the context of our core CRM business, have been restructured and integrated with Transcom’s customer care operations.
Transcom’s Board of Directors is convinced that the timing is now right for carrying out a re-domiciliation of the parent company of the
The interim report is also available for download on www.transcom.com
Results Conference Call and Webcast
Transcom will host a conference call at
To ensure that you are connected to the conference call, please dial in a few minutes before the start in order to register your attendance. No pass code is required
US: +1 855 753 2230
For a replay of the results conference call, please visit www.transcom.com to view the webcast of the event.
For further information please contact:
Transcom is a global customer experience specialist, providing customer care, sales, technical support and credit management services through our extensive network of contact centers and work-at-home agents. We are 29,000 customer experience specialists at 57 contact centers across 24 countries, delivering services in 33 languages to over 400 international brands in various industry verticals.
This information was brought to you by Cision http://news.cision.com
The following files are available for download:
Most Popular Stories
- Fantasy Football Gambling Industry Facing Increased Legal Scrutiny
- As States Legalize Pot, Will Traffic Deaths Rise?
- NATO Plans High-Readiness Force to Counter Russia
- Obama Promoting Economic Gains As Elections Near
- 'Guardians of the Galaxy' Conquers the North American Box Office with $16.3M
- GE Capital and Petters-Related Fund in Legal Battle
- California Conservation Conundrum: Water Use Varies Greatly Across State
- Combating Online Abuse Not Easy for Gamers
- Even With Surly 2014 Electorate, It's 'Still an Incumbent's World'
- Feds Want Nuclear Waste Train, but Nowhere to Go