Capita signs £528m contract extension with major European telecoms provider

Building on the current framework contract, the extension now has a minimum volume base and is worth up to £528m in total to the order book including a four-year contract extension beginning January 2023, a pre-priced option for a further three-year contract extension, and a volume underpin for 2022. Capita has been partnering with this client for more than 20 years, delivering 24/7 customer service. Capita provides support on a range of products and services including technical assistance for mobile phone and TV products, as well as order fulfilment support for residential and business customers. Capita is also part of the process that supports the online chat facility by managing outbound responses to customers.

The current contract started in 2012 and has consistently scored high net promoter scores from both our client and their customers.

Capita employs more than 1,000 full-time, highly trained local people on this contract, who are committed to delivering the best possible customer service and have significant knowledge of both the product and market.

Jon Lewis, Capita’s chief executive officer, said: “The award of this contract extension reflects our extensive experience and expertise in customer management, our telecoms domain expertise, and the knowledge and understanding we have developed of this client’s business and their needs over the past 20 years.

“We have continued to deliver exceptional quality of service, achieving consistently high satisfaction scores from both our client – and their customers – and look forward to continuing to partner with and deliver for them.

“This is another example of Capita executing on its strategy to deliver for its clients, creating better outcomes for clients and their customers, and helping improve our own cash and margin performance.”

Notes to editors:

The total IFRS 15 transaction price (order book) is £528m. This includes £264m for the four-year contract extension, £198m for the pre-priced option for a further three-year contract extension and £66m of revenue for 2022 which now qualifies for inclusion in the order book.

Previous contracts have not been included within the order book as the contractual arrangements did not meet the relevant IFRS 15 definition and were therefore treated as framework agreements.

For more information, please contact:

Investor enquiries: Stuart Morgan, Director of Investor Relations
Tel: 07989 665484
Email: IRteam@capita.co.uk

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