Convergys revenue dips 9% due to telecom clients

Convergys
BPO firm Convergys posted revenue of $689 million (–9 percent) with operating income of $52 million and net income of $9 million and EBITDA of $84 million in Q4 2017.

“Revenue and operating profit decreased primarily due to volume fluctuations with our largest communications and technology clients,” said Andrea Ayers, president and CEO of Convergys.

Three Months EndedTwelve Months Ended
December 31,%December 31,%
(Amounts in millions except per share amounts)20172016Change20172016Change
Revenues:
Communications$301.2$350.5(14)%$1,274.0$1,442.1(12)%
Technology139.6151.2(8)%570.7623.8(9)%
Financial Services56.159.9(6)%237.4217.59%
Other192.5196.3(2)%710.0630.213%
Total Revenues$689.4$757.9(9)%$2,792.1$2,913.6(4)%

Convergys reported revenue of $2,792 million (–4 percent) with operating Income of $197 million, Adjusted EBITDA of $351 million and net income of $121 million in 2017.

The US-based technology outsourcing company reported 14 percent drop in revenue from communications business, 8 percent dip in technology clients and 6 percent decline in financial services clients.

Convergys said it is expecting constant currency revenue in 2018 to decrease by up to 7 percent, including 5 percent to 6 percent impact from significant volume fluctuations with the company’s largest two clients.

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