Transcom Holding AB (publ): Third quarter report 2020
Third quarter 2020 highlights
- Revenue increased to 140.4 M€ (130.5)
- EBITDA excluding non-recurring items increased to 15.3 M€ (10.6)
- EBITDA margin excluding non-recurring items increased to 10.9% (8.1%)
- Operating cash flow increased to 20.9 M€ (12.5)
- Net debt/EBITDA decreased to 3.7 (4.3)
January-September 2020
- Revenue increased to 400.4 M€ (399.6)
- EBITDA excluding non-recurring items increased to 36.9 M€ (32.2)
- EBITDA margin excluding non-recurring items increased to 9.2% (8.1%)
- Operating cash flow increased to 41.8 M€ (30.1)
Comments by the CEO
Strengthened trajectory of profitable organic growth
During the third quarter, revenue grew 7.6% and the EBITDA margin increased 2.8pp, all organically. Revenue growth is predominately driven by existing clients while profitability improvements are driven by a combination of increased volume, productivity improvements and continued positive mix shift towards business with higher profitability.
Our sales momentum is strong and we continue to win new contracts. This year’s estimated revenue from new contracts is about 3x compared to last year. In particular, Transcom’s offering to the Commerce & Tech1 sector drives strong growth.
Demand is growing for T:Anywhere, Transcom’s solution for permanent Work-At-Home delivery. T:Anywhere provides an end-to-end solution for digital recruiting, training, onboarding and customer experience operations. It has a strong track record of customer satisfaction and employee satisfaction as well as cost efficiency. Moreover, it complies with all relevant customer service, privacy and security standards. In short, T:Anywhere provides a world-class customer service solution, for all industries in any market.
We continue to develop our digital capabilities and are rewarded for our efforts. Global analyst firm ISG has recognized Transcom as a Global Rising Star and a Europe & UK Leader within digital customer experience.
During the quarter we went live with our new sites in Tuzla, Bosnia Herzegovina, and Cairo, Egypt. Tuzla provides native-level German services, while Cairo provides the benefits of cost efficient multilingual services. We continue the repositioning to cost efficient locations and plan to open several new sites coming quarters.
Transcom has embarked on a journey of profitable growth. The market outlook is strong with growth driven by an accelerated shift from the “walk-in-economy” to digital commerce. Our priorities are client focus and operational excellence, driven by great culture and leadership.
Jonas Dahlberg, President & CEO
1Commerce & Logistics has been renamed to Commerce & Tech
Q3 2020 Financial Update Call
Transcom will host a conference call on Wednesday, November 11, 2020 at 9:00 CET. The presentation for the call is available via this link and on https://transcom.com/en/investor-relations.
Presentation details
Date/Time: Wednesday, November 11, 2020 at 9:00 CET
Online Registration link: http://emea.directeventreg.com/registration/9869364
Important note: Please register via the link above at least 5-10 minutes prior the call in order to obtain the dial-in numbers and pin code required for the call.
For further information, please contact
Jonas Dahlberg, President & CEO Transcom
Phone: +46 (0)70 347 23 83, email: Jonas.dahlberg@transcom.com
Snejana Koleva, CFO
Telefon: +46 (0)70 508 38 30, epost: snejana.koleva@transcom.com
Helene Ruda, Head of Group communications
Phone: +46 (0)70 311 7560, email: helene.ruda@transcom.com
About Transcom
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 26,000 customer experience specialists at 50 contact centers across 22 countries, delivering services in 33 languages to international brands in various industry verticals.