DGAP-Ad-hoc: Majorel Group Luxembourg S.A. / Key word(s): Quarter Results/Quarter Results
Majorel Group Luxembourg S.A. : Majorel reports strong top line growth for Q1 of +18%, continued progress of successful strategy execution

05-May-2022 / 08:30 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


Majorel reports strong top line growth for Q1 of +18%,
continued progress of successful strategy execution

Luxembourg, May 5, 2022: Majorel Group Luxembourg S.A. (Euronext Amsterdam: MAJ) (“Majorel” or the ‘’Company”), a leading global provider of next-generation end-to-end customer experience (CX) solutions for digital-native and vertical leading brands, today reports on selected results for Q1 2022[1].


  • Continuing strong topline growth of +18% YOY, resulting in net revenue[2] of €480 million (Q1 2021: €407 million); adjusted for M&A[3] and COVID-19 related business[4], like-for-like growth was +16% YOY.
  • Strong growth across all business Segments: GEMS (Global English, Middle East and South East Asia) at +32%, CEA (China and East Asia) at +28%, and EASA (Europe, Africa and South America) at +14%.
  • Continued successful strategy execution: geographical expansion (three new countries); expansion with existing and new clients (net revenue retention[5] of 116%); strategic partnerships (Booking.com announced); M&A (Mayen completed and IST announced) and progress in all strategic KPIs.

Commenting on the results, Thomas Mackenbrock, CEO of Majorel Group said: "Following significant growth last year, we have maintained our strong momentum and delivered +18% YOY uplift in net revenue in the first quarter of 2022. Majorel has continued its geographical expansion, extended client relationships, and announced a new strategic partnership and an acquisition. This relentless focus on strategy execution is the basis for our success. We are honored to provide comprehensive CX services to our more than 400 clients worldwide and grateful for the unswerving commitment of our more than 73,000 team members. We will continue to build on this solid foundation in the coming months, aiming to further consolidate Majorel’s leading position in global CX.”


The Company reported net revenue of €480 million for Q1 2022, representing YOY growth of +18% with continued strong growth across all business Segments.

The first time consolidation of the Turkish Mayen business, which became part of Majorel on January 1, 2022, contributed approximately two percentage points to the overall net revenue growth for Q1 2022.
Net revenue from non-recurring COVID-19 related business contributed €26 million (Q1 2021: €25 million). Therefore, adjusted for M&A and COVID-19 related business, like-for-like growth was +16%.

Revenue, net revenue and net revenue by business Segment

  Q1 2022 Q1 2021 YOY change
Revenue €489m €422m +16%
Net revenue €480m €407m +18%
EASA Segment €354m €311m +14%
GEMS Segment €100m €76m +32%
CEA Segment €26m €20m +28%

Note: Q1 numbers are based on unaudited and non-reviewed management reporting.

EASA Segment: Europe, Africa and South America

The EASA Segment has delivered YOY growth in net revenue for Q1 of +14%. The main driver for this development was the strong development in the Company’s near- and offshore locations in Africa, Eastern Europe, and Latin America. As outlined above, EASA also includes the COVID-19 related business and the first time consolidation of the Turkish Mayen business. Adjusted for these effects the like-for-like growth in EASA was +11%.

GEMS Segment: Global English, Middle East and South East Asia

The GEMS Segment has delivered YOY growth in net revenue for Q1 of +32%. This strong increase was driven by the Company’s continued expansion with Global Internet Clients, particularly in the Philippines, Canada, the US, Malaysia, Egypt and Kenya.

CEA Segment: China and East Asia

The CEA Segment has delivered YOY growth in net revenue for Q1 of +28%. The positive contribution from this Segment of 5% of group net revenue is in line with management expectations and was driven by the continuing growth of digital consumer engagement services, and the focus on consumer products, automotive, and digital-native clients.


Geographical expansion: Majorel further extended its offshore capabilities and entered three new countries in Q1, 2022 – Ghana, North Macedonia and Greece – enabling the Company to offer even more flexible delivery options to its clients. Majorel is now present in 36 countries on five continents and its workforce has expanded to more than 73,000 team members at March 31, 2022 (FY 2021: 69,000).

Growth with clients: Majorel delivered net revenue retention of 116% in Q1 (Q1 2021: 119%).

Strategic partnership: Majorel announced an agreement to an expanded strategic partnership with its client Booking.com. It also fulfils the Company’s strategic goal of expanding into new countries – South Korea, Japan, Thailand and Lithuania – and further consolidates its existing presence in the other markets. The new partnership is still expected to commence at the end of Q2 2022.

Growth through M&A: In addition to completing the acquisition of Mayen, the Company announced that it had signed a contract to acquire IST Networks, a leading full-service CX Technology Services provider. This acquisition, further enhances Majorel’s partnership network with global CX technology leaders and gains access to sophisticated nearshore delivery hubs. In particular, Majorel will welcome more than 200 highly experienced CX technical engineers and solution consultants who design, implement and manage sophisticated CX architectures.

Progress in all strategic KPIs: In Q1, 2022, 47% of net revenue was from Global Internet Clients (FY 2021: 45%), including 21% of net revenue from Majorel’s Content Services, Trust & Safety line of business (FY 2021: 21%). Furthermore, Tech & Expert services represented 9% of net revenue (FY 2021: 9%). Offshore represented 42% of net revenue (FY 2021: 39%). In line with our guidance, net revenue from the Telco sector continues to decrease, equating to 10% of group net revenues (FY 2021: 12%).


Majorel re-confirms its guidance for the full fiscal year 2022. The outlook is based on the Company’s current assessment on the development of the business in 2022 and the general CX market, combined with economic and labor market conditions in its geographic footprint, including expected effects from inflation.

Naturally, Majorel will continue to keep a careful watch on the saddening events in Ukraine and the ongoing COVID-19 situation. This includes monitoring any economic consequences around the world, especially in China, and their potential impact on Majorel’s business.

Against this background and the strong performance in Q1 2022, Majorel expects net revenue this year to grow by 12-18% compared to net revenue in 2021 without COVID-19 related services. This means an expected range of €1,850-1,950 million for FY2022, with the Operating EBITDA margin expected to be between 16.0-17.0%[6].


Thursday, May 5, 2022 at 16:00hrs CEST

If you would like to participate in the conference call, please pre-register by clicking on the link and you will then receive the dial-in details: https://event-registration.arkadin.com/626643163d876e39fbc0eb2c

To follow the presentation, conference call participants can use the following link (only slides, no audio): https://www.webcast-eqs.com/majorel20220505/no-audio

If you would like to follow the presentation without participating in the conference call, you can join the webcast via livestream and you will receive the audio via your internet browser. No dial-in to the conference call is required: https://www.webcast-eqs.com/majorel20220505

A presentation of the Q1 2022 results is available on the Investor Relations section of Majorel's website (www.majorel.com).


Capital Markets Day, London June 9, 2022

Annual General Meeting June 20, 2022

H1 2022 Results August 30, 2022

Q3/9M Trading Update November 3, 2022


We design, build and deliver next-generation end-to-end CX solutions for many of the world’s most respected digital-native and vertical leading brands. Our comprehensive east-to-west global footprint in 36 countries across five continents, with more than 73,000 team members[7] and 60 languages, allows us to deliver flexible solutions that leverage our expertise in cultural nuance, which we believe to be essential for true excellence in CX. We have deep domain expertise in tech-augmented front to-back-office CX. Additionally, we offer Digital Consumer Engagement, CX Consulting, and an innovative suite of Proprietary Digital Solutions for industry verticals. We are a global leader in Content Services, Trust & Safety. We believe the ‘Majorel difference’ to be our culture of entrepreneurship.


Investor Relations
Insa Calsow
EVP, Investor Relations

Media Relations
Andrew Slater
SVP, Global Marketing & Communications


This announcement is released by Majorel Group Luxembourg S.A. (“Company”) and contains information that qualified or may have qualified as inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR). This announcement is made for the purposes of MAR and pursuant to Article 2 of Commission Implementing Regulation (EU) 2016/1055.

All financials are based on unaudited and non-reviewed management reporting. It does not purport to contain all information required to evaluate the Company and/or its financial position. All forward-looking statements are based on the Company’s present expectations of future events and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For a detailed description of these factors and uncertainties, please refer to the “Risk Factors” section of our Prospectus, available at https://www.bourse.lu/issuer/MajorelGroupSA/105258. The Company undertakes no obligation to publicly update or revise any of these forward-looking statements.

[1] All financials are based on unaudited and non-reviewed management reporting
[2] Net revenue for the Group corresponds to revenues as reported in our management reporting less certain direct, order-related external costs which are part of external expenses and costs of materials and consist mainly of cost of services purchased (subcontracted or outsourced services). Net revenue for each Segment corresponds to the according Segment revenues less certain direct, order-related inter-Segment and external costs. Management reporting data exclude revenues from minor activities (primarily the Sonopress Business) outside the Majorel Group's core business which are reported in the consolidated income statement (the “Sonopress Business” is defined as certain non-core business activities historically carried out by Arvato de Mexico, S.A. de C.V., which was wound down in 2021).
[3] First time consolidation of Turkish Mayen business Jan 1, 2022.
[4] Adjusted for non-recurring COVID-19 related business in Q1 2021 and Q1 2022.
[5] Net revenue retention Q1 2022 is defined as net revenue generated by clients in Q1 2022 divided by net revenue generated by the same cohort of clients in Q1 2021. Net revenue retention Q1 2021 is defined as net revenue generated by clients in Q1 2021 divided by net revenue generated by the same cohort of clients in Q1 2020 (excluding China Business in 2021).
[6] We define Operating EBITDA margin as Operating EBITDA divided by net revenue.
[7] As of March 31, 2022.

05-May-2022 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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Language: English
Company: Majorel Group Luxembourg S.A.
18, boulevard de Kockelscheuer
L-1821 Luxembourg
Phone: +352 42 142 56 11
E-mail: insa.calsow@majorel.com
Internet: www.majorel.com
ISIN: LU2382956378
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt, Munich, Stuttgart; Amsterdam
EQS News ID: 1344117

End of Announcement DGAP News Service

1344117  05-May-2022 CET/CEST