Transcom Holding AB (publ): First quarter report 2025

Q1 2025 highlights

• Revenue increased to €190.9M (€189.1)
• EBITDA excluding non-recurring items increased to €22.6M (€21.9)
• EBITDA margin excluding non-recurring items increased to 11.9% (11.6%)
• Operating cash flow increased to €20.4M (€18.8)
• Net debt/EBITDA increased to 4.2 (4.0)

Comments by the CEO: Transcom delivers solid Q1 2025 results

Transcom started 2025 on a positive note, delivering solid performance in the first quarter. Revenue increased to €190.9 million (€189.1), with EBITDA excluding non-recurring items rising to €22.6 million (€21.9), and an improved EBITDA margin of 11.9% (11.6%). These figures reflect our continued focus on operational excellence and our strategic growth initiatives and demonstrate solid performance in an environment where the US economy experienced contraction and the European economy only showing modest growth.

The eCommerce & Tech sector continues to be a key growth driver, up with 11.9% in the quarter, representing 49% of our total revenue over the last twelve months. While the EBITDA margin for the sector saw some adjustment in the European segment, the overall performance remains robust.

The English-speaking segment also showed strong performance, driven by higher volumes from eCommerce & Tech contracts, although the EBITDA margin reflects a higher share of onshore US business. In Europe, improvements achieved in the Service & Utilities sector are driven by nearshoring and operational efficiency gains. However, some European onshore markets continue to be challenging and further optimization of our footprint and commercial terms remains core to our transformational strategy.

Transcom’s commitment to delivering digitally enabled and AI-driven solutions continues to be at the forefront. Our offerings are expanding and improving and the penetration of AI-enabled solutions in our client portfolio is up to 49% of the total revenue in Q1, a significant increase from 43% in the previous quarter.

Looking ahead, we anticipate a continued complex environment marked by geopolitical and macroeconomic uncertainties, coupled with currency volatility. While we observe a cautious approach from some clients, mirroring industry trends, we remain confident in our strategic direction. Our focus on delivering AI solutions with clear use-cases and demonstrable ROI is resonating with the market. Furthermore, the sustained and growing demand for our offshore solutions across India, Egypt, Tunisia, and the Philippines positions us well for future growth and adaptability. We are already ramping up new sites and clients in India and in Egypt, both which are expected to contribute positively to the group within the year, however ramp-up costs will affect us in the short term. We have a solid pipeline of opportunities bringing forward compelling proposals and advanced Total Cost of Ownership (TCO) commercial models and we are confident in our ability to continue delivering value to our clients.

We will maintain our relentless focus on operational excellence while continuing to gain new clients contracts. We appreciate the dedication of our global team and their hard work to drive our growth and improve profitability. We are confident that we have laid the right foundation to drive sustainable growth and profitability, in this ever-evolving CX landscape.

Brian Johnson, President & CEO

Earnings call

Transcom will host a webcast at 9:00 CET on May 8, 2025. The webcast will be held in English. The presentation will be available on https://transcom.com/about-us/investor-relations. 

Presentation details

Date/Time: Thursday, May 8, at 9:00 am CET

Online Registration link: https://app.livestorm.co/transcom-holding/transcom-holding-ab-q1-2025-results-presentation

Important note: Please register via the link above at least 5-10 minutes prior the webcast in order to obtain the webcast link. If you register in advance, you will be sent an email reminder an hour prior to the webcast.

For further information, please contact

Snejana Koleva, Chief Financial Officer
Phone: + 46 (0)70 508 3830, email: snejana.koleva@transcom.com

Helene Ruda, Head of Sustainability and Corporate Communications
Phone: +46 (0) 70 311 7560, email: helene.ruda@transcom.com

About Transcom

Transcom provides AI and digitally enhanced customer experience (CX) services to some of the world's most ambitious brands. More than 300 clients globally, including disruptive e-commerce players, category redefining fintechs, and technology legends rely on us for on-, off-, and nearshoring services. Transcom’s over 30,000 employees work in over 85 contact centers and work-at-home networks across 29 countries, creating brilliant experiences in customer care, sales, content moderation and backoffice services. We help our clients drive their brands forward, customer satisfaction up and operating costs down. For more information, visit www.transcom.com.