Convergys revenue flat

Convergys today reported fourth quarter revenues of $590.7 million, essentially flat compared with the $594.0 million reported in the fourth quarter of 2000. However, fourth quarter revenues were 4 percent ahead of the 567.2 million reported in the third quarter.

Operating income increased 7 percent to $96.1 million, up from $89.6 million while Convergys’ operating margin increased to 16.3 percent from 15.1 percent.

For the full year, the company’s total revenues jumped 6 percent to $2.32 billion compared with $2.20 billion reported in 2000.

Commenting on the prospects for growth this year, Chief Financial Officer Steven Rolls said the company expects to generate additional revenue from both the European market and the recently announced contract between AT&T Consumer and Accenture. Convergys already provides outsourced services to AT&T Consumer and has already had discussion with Accenture about sub-contracting some of the call center operations as part of its co-sourcing deal.

“We believe our average subscribers should grow at 20% or better this year,” said Rolls.