TRANSCOM REPORTS FINANCIAL RESULTS FOR THE THIRD QUARTER AND NINE MONTHS ENDED 30 SEPTEMBER 2012

Q3 2012 financial highlights

• Net revenue €148.2 million, an increase of €15.5 million (+11.7%) compared to Q311 (€132.7 million). The exchange rate impact on revenue was +€6.4 million, compared to Q311.
• Gross margin 19.1% (19.0% in Q311).
• EBITDA €3.8 million compared to €-2.4 million in Q311
• EBITA €2.2 million compared to €-4.8 million in Q311. The exchange rate impact on EBITA was +€0.2 million, compared to Q311.
• EPS -0.3 Euro cents compared to -31 Euro cents in Q311

Comments from the President and CEO

Our top-line growth continued to improve in the third quarter, with revenue increasing by 11.7% compared to the same quarter last year. The lion’s share of the increase stems from organic growth – driven both by the winning of new clients and by higher volumes with our installed client base – while currency effects contributed 4.8 percentage points to overall growth. Whereas revenue fell in the CMS business, all our regions managed to deliver growth, with the North, North America & Asia Pacific and South regions contributing most to the increase. I am confident that we can sustain this momentum for the rest of the year and beyond, as we continue to invest in developing our client relationships and our delivery capability.

EBITA in the third quarter was €2.2 million, compared to an underlying EBITA of €3.9 million in Q311. This performance should be viewed in the context of significant expansion costs during the quarter, amounting to €3.3 million, primarily in the Philippines. Revenue associated with these costs will gradually be ramped up in the coming months. Transcom’s total headcount increased by 1,100 this quarter, to 27,100 people. In order to deliver against contracted volumes, we will continue to expand headcount for the remainder of the year.

To further align our cost base to current business conditions, and to concentrate the focus of our central support teams, we will restructure our corporate organization. These actions will reduce overhead costs by approximately €1.9 million on an annual basis, with full effect from 2013. Restructuring costs amounting to approximately €1.7 million will impact our Q412 results.

This quarterly report reflects previously announced changes in Transcom’s segment reporting structure, namely that our operations in Credit Management Services (CMS) are now managed as a separate business unit. In addition, the Baltic countries now form part of the North region rather than the Central Europe region. The reorganization has triggered a change in the distribution of goodwill. Transcom is therefore assessing the possible impact on goodwill carrying values during the fourth quarter.

Johan Eriksson, President and CEO of Transcom

The interim report is also available for download on www.transcom.com

Results Conference Call and Webcast

Transcom will host a conference call at 10.30 am CET (09:30 am UK time) on Thursday, October 18, 2012. The conference call will be held in English and will also be available as webcast on Transcom’s website, www.transcom.com.

Dial-in information

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.

Sweden: 08-503 364 34

UK: +44 (0) 1452 555 566

US: +1 631 510 7498

Passcode: 30676494

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:

Johan Eriksson, President and CEO              +46 70 776 80 22

Marcus Süllmann, CFO                                              +352 691 755 060

Stefan Pettersson, Head of Investor Relations          +46 70 776 80 88

About Transcom

Transcom is a global outsourced service provider entirely focused on customers, the service they experience and the revenue they generate. Our customer management and credit management services are designed to strengthen our clients’ customer relationships and secure their revenue streams.

Our broad service portfolio supports every stage of the customer lifecycle, from acquisition through service, retention, cross and upsell, then on through early and contingent collections to legal recovery.  Expert at managing both customers and debt, we make a positive contribution to our clients’ profitability by helping them win customers, maintain their loyalty and secure their payments.

And, while our services are designed to maximize revenue, our delivery operations are built to drive efficiency.  Through our global network we can provide service in any country where our clients have customers, accessing the most appropriate skills and deploying the best communication channels in the most cost effective locations.

Every day we handle over 600,000 customer contacts in 33 languages for more than 350 clients, including brand leaders in some of today’s most challenging and competitive industry sectors. The experience we gain is used to constantly refine our service portfolio and business processes, allowing us to respond quickly to changing market conditions and client requirements.

Transcom WorldWide S.A. Class A and Class B shares are listed on the Nasdaq OMX Stockholm Small Cap list under the symbols ‘TWW SDB A’ and ‘TWW SDB B’.