LATAM Currency Crisis Dents Teleperformance Balance Sheet

Widely fluctuating currency in Argentina and Brazil has negatively impacted Teleperformance’s balance sheet, with the global BPO giant’s Ibero-LATAM unit reporting more than a 6% drop for the first quarter …

Widely fluctuating currency in Argentina and Brazil has negatively impacted Teleperformance’s balance sheet, with the global BPO giant’s Ibero-LATAM unit reporting more than a 6% drop for the first quarter of this year. This is the first major example of Latin American currency woes affecting global outsourcing firms.

In the first half of 2013, a more conducive economic climate in the region had helped the Paris-based firm increase its profit by a record 17%.

But the rapid growth in business in Mexico and Colombia has helped the firm make up for the loss incurred in Argentina and Brazil. Despite currency troubles, the company’s global revenue increased more than 9.1% in this quarter.

“There was growth momentum in all three of our language regions. Performance was particularly remarkable in the United States, China, Colombia, Mexico and Portugal,” stated the company CEO Paulo César Salles Vasques in a statement.

However, “Changes in exchange rates had a €32.7 million (43 million USD) negative impact on reported revenue that mainly reflected the decline in the Brazilian real, US dollar, and Mexican, Colombian and Argentine pesos against the euro.”

Over the past year, the Brazilian real dropped almost 20% while the Argentine peso slumped 40% against the Euro.

Yet Teleperformance stated that “operations in the Ibero-LATAM region delivered satisfactory growth for the first quarter, with a like-for-like increase of 5.1%.”

Teleperformance opened eight new delivery centers in Ibero-LATAM region, which includes Spanish and Portugal, in first half of 2013. The firm offers customer care, technical support, customer acquisition and debt collection programs.

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