Q3 2020 Atento SA Earnings Call
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I'm good day. Ladies and gentlemen, and welcome to attend the third quarter 2020 results conference call. My name is Beatrice and I'll be your operator at this time. All participants are in a listen-only mode. You conduct a question-and-answer session towards the end of today's conference. If you would like to ask a question, please press star followed by one you may have you drive your question at any time by pressing the star followed by two.
If you are using a speakerphone, please leave the handset before making your selection as a reminder to this call is being recorded now. I'd like to turn it to you that's recovery with sequential most importantly it on your growth and profitability programs.
Also, we happy to confirm that we continue to Project X.
tension of the business improvements to key for
although we have experienced a significantly adverse affects Right movement during the last few months. We expect lots of it along with the impacts of the pandemic and deliver in 2020 at home better heavy. Levels and last year in current directors.
We have a key thing to three significant sequential Improvement extending to all key operational Netflix.
He's Revenue has improved or. Percent has more than doubled and Amazon margin has increased by 5.6 percentage points more importantly these results put us off about pre-crisis levels when compared with the same period in 2019. We have no Revenue by over 2% and maybe that has improved close to 14%
What's the spec the business to continue to improving to be for sales are up 2% over 2019 levels despite the slow down in crypto with that even higher average contribution margin in those wage compared with the nineteen levels, which reflect a higher quality of ourselves with the sector continues to lead our growth with our 10% year-over-year Revenue growth, very important, California volumes are also recovering in Q3, California grew 17% sequentially, and we purchased additional problem, bro. Thank you for
When these results and forecasts we back on track to deliver on our three-year transformation plan, which we communicated last November we speak to exit the at or above the race required by the plan.
Can I talk to on the pandemic status has been dominated by the focus on addressing the challenges presented by the dynamic dead?
Although that hopeful signs in the Horizon. We are still in the middle of a developing code crisis home.
Would be the deployment of our employees to the attempt to our home model and the reconfiguration of our centres is working.
With the boiling permanent platform that will serve as well into 2021 and Beyond however, we not complacent.
Would it mean Vigilant to continue to deliver on our priorities the safety of our employees and the continued service to our clients? Let me touch on the edge of the stuff formation.
Despite the challenges and opportunities of twenty-twenty. We continue to be focused on the completion of our business information both externally and internally.
We continue to make progress in our operational Improvement plan. The results can be seen in higher growth and significantly improved margins will so continue to diversify our business hour multiply for clients now represent almost 70% of revenues up from 60% when we started to implement the three horizontal lines.
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We have been expanding into fast-growing verticals such as digital Tech Revenue up 17% sequentially and continuing to gain traction for four.
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Plenty of our business is improving.
Particularly as we move more and more into next Generation services. This allows us to generate better margins with telefonica and also to strengthen our position to be the partner of choice for customer experience.
As we consistently improve our performance with strengthening a pencil dominant Market position in Latin America.
Capitulation on our leadership position and a strong brand to capture more market share in the region in domestic segment. We maintain a commanding 22% market share three times a month then the next competitor.
In the seal our market share is nearly 29% and we leave the number two player by 19 percentage points.
Our transition to next-generation Services continues to accelerate 50% of our new sales our next Generation Services up from 42% less for these programs. Give them more than ten percentage points higher contribution margin than our average like I said contract we have the power our first Innovation centers in Brazil and now instead.
We know that Innovation is not telling a process.
It needs to be part of the day-to-day thinking and part of the culture of the company.
Did you alone or 10% of our sales come from completely new Services developed in the last 12 months?
This is the point Innovations. Internally. We have developed. It fully detail end-to-end recruitment selection and training process.
New subdivision intelligence and advanced automation to improve the speed of the success rate of this particular activities.
Its success has allowed us to take share from our competition in highly competitive markets such as the US to the different plans emack.
Because anything to improvement in our dominance.
We have Welcome to our board of directors to additional independent directors which increases diversity of expertise on the board and increases the number of independent directors to five out of a total of 8 months.
In summary, we continue to execute our transformation deliver resources plan. We have recovered from the initial impact of the credit crisis and our operating at a higher performance levels than last year with with higher growth and significantly improve margins.
We speak to finish a year at every level equal or better than last year after having managed a significant market and operating prices and adverse foreign exchange rates change of 35% University, Andrea.
Sometimes we have improved Revenue in Q3 by 2.2% and every time I close to 14% $40 a year.
Currington's respect to finish the year at or better than 11% everything margin two percentage points better than our result in 2019.
In terms of the line. We have begun the recovering Q3 in the second half of the Year respect to grow 7% sequentially, which represents a 2% year-over-year growth.
This Improvement is beginning to address the drop that we have in the first half of the year as a result of the Potomac.
Finally we have been able to maintain our leverage under control even with the Brazilian real depreciation.
Oh hi cash flow generation has needed to improve for three consecutive quarters.
We continued every time proving 20-21 respect to deliver on long-term leverage targets ahead of the end of 2022.
We know that Christ is not over and I will continue willing to 20 21 will so now that there will be other challenges awaiting us next year.
But overcoming the difficulties of twenty-twenty and exiting the year on plan with a significant upward trajectory gives us the confidence to face 2021 with a sense of optimism opportunity.
Thank you very much and let me turn it over to Jose.
Thank you, Carlos. Please turn to the next slide.
during the quarter we continue to make a significant Headway in terms of profitable Revenue growth has cartoons not and nearly percent increase in multicellular organisms like a 2% increase in Consolidated revenues, which is encouraging as we were able to resume following a difficult crisis invite Sixth Avenue do 10.5% the main sources of growth where multi-sector Brazil and the US sugar was not that telefonica revenues you earn a 17% sequential a greater mix of multi-sectoral revenues and next-generation service drove a nearly 14% increase in wage while our margin expanded 100 basis points to 12.7% on a sequential basis power ABT d a tablet
Also improving on higher efficiency levels that we have been achieving through the operational improvements under our three orange black a will expand on this in a moment.
At the end of the quarter multi-sector sales has grown to nearly 78% of Brazil's already. This girl was driven by higher demand for Next Generation.