logo image
  • News
    • People Moves
    • Deal Wins
    • Demand Drivers
    • M&A and Funding
    • Financial Results
    • Technology
    • Academia
    • Industry News
    • Features
    • Machine Translation
    • — Divider —
    • Slator Pro
    • — Divider —
    • Press Releases
    • Sponsored Content
  • Data & Research
    • Research Reports & Pro Guides
    • Language Industry Investor Map
    • Real-Time Charts of Listed LSPs
    • Language Service Provider Index
  • Podcasts & Videos
  • Events
    • Design Thinking – February 2021
    • — Divider —
    • SlatorCon Coverage
    • Other Events
  • Directory
  • RFP Center
  • Jobs
MENU
  • News
    • People Moves
    • Deal Wins
    • Demand Drivers
    • M&A and Funding
    • Financial Results
    • Technology
    • Academia
    • Industry News
    • Features
    • Machine Translation
    • — Divider —
    • Slator Pro
    • — Divider —
    • Press Releases
    • Sponsored Content
  • Data & Research
    • Research Reports & Pro Guides
    • Language Industry Investor Map
    • Real-Time Charts of Listed LSPs
    • Language Service Provider Index
  • Podcasts & Videos
  • Events
    • Design Thinking – February 2021
    • — Divider —
    • SlatorCon Coverage
    • Other Events
  • Directory
  • RFP Center
  • Jobs

Advertise on Slator! Download the 2021 Online Media Kit Now

  • Slator Market Intelligence
  • Slator Advertising Services
  • Slator Advisory
  • Login
Search
Generic filters
Exact matches only
Advertisement
Here’s the First Half 2018 Scorecard for Listed Language Service Providers

3 years ago

July 12, 2018

Here’s the First Half 2018 Scorecard for Listed Language Service Providers

Financial Results ·

by Florian Faes

On July 12, 2018

3 years ago
Financial Results ·

by Florian Faes

On July 12, 2018

Here’s the First Half 2018 Scorecard for Listed Language Service Providers

While the global economy has been humming along nicely in the first half of 2018, global stock markets have mostly been treading water as uncertainty over trade and potentially rich valuations dampened the mood of investors.

Performance among the few listed language services and technology providers, too, has lagged behind 2017 and slowed since our most recent performance update in April 2018. Overall, however, language industry companies still outperformed the major indices.

Industry heavyweight RWS managed to claw back most of the losses incurred in the wake of posting a trading update on full-year results. As of early July 2018, the company again weighs in at over USD 1.5bn in market capitalization.

Advertisement

Japan’s Honyaku Center outperformed after the company announced a change of leadership and unveiled a new “Medium-Term Management Plan”. Australia-based language data provider Appen, meanwhile, continues its strong upward trajectory, adding a cool AUD 300m (USD 222m) in market cap since our February 2018 update. As of early July, the company is now valued at AUD 1.3bn (USD 1bn), benefiting from the booming demand for data feeding artificial intelligence applications.

Industry stalwart SDL has been trending sideways so far in 2018. The UK-based language services and technology company gave markets an update back in April 2018, telling investors Q1 2018 was in line with expectations. It seems markets are waiting for some kind of catalyst at SDL to drive performance in either direction. This could come in the form of a major acquisition or a significant change in the company’s performance given the transformation begun two years ago.

Shares in game localizer and technical services provider Keywords have slowed their ascent as off late as the company is digesting the dozens of acquisitions made over the past 18 to 24 months. Valued at USD 1.46bn, the company still has enough financial firepower to continue its acquisition strategy, cornering the game localization and production niche.

The best performing stock in the language industry universe year-to-date has been ZOO Digital. The media localization platform provider’s shares have surged around 40% in the first half of 2018 and continue to rise sharply in the first days of July. The company benefits from a boom in streaming video content, which has brought about a scramble for resources in media localization. With revenues up 73% in 2017 and adjusted EBITDA increasing by 35%, the company’s recent performance is resonating with investors, who continue to snap up shares.

While not being listed as a stand-alone company, remote interpreter LanguageLine certainly seems to have helped the performance of its parent company, Teleperformance, despite a slowdown in revenue, a weak dollar and a technical incident that adversely affected the volume of billed services. Shares in the Paris-listed call center operator are up nearly 30% year-to-date, valuing the company at EUR 8.9bn (USD 10.5bn).

While the publicly listed companies are facing constant investor scrutiny, large privately owned language service providers (LSPs) such as Lionbridge, Welocalize, Amplexor, or the under-the-radar Swiss-based Star Group have been relatively quiet so far in 2018, without any major acquisitions or other strategic moves being announced.

The exception among private LSPs is TransPerfect, which is back on the acquisition trail with the takeover of San Francisco-based TranslateNow. With the ownership situation resolved, TransPerfect is gathering momentum, posting 20% revenue growth in the first half of 2018.

TAGS

AMPLEXORAppenHonyaku CenterKeywords StudiosLanguageLineLionbridgeRWSSDLSTAR GroupTeleperformanceTranslateNowTransPerfectWelocalizeZoo Digital
SHARE
Florian Faes

By Florian Faes

Co-Founder of Slator. Linguist, business developer, and mountain runner. Based in the beautiful lakeside city of Zurich, Switzerland.

Advertisement

SUBSCRIBE TO THE SLATOR WEEKLY

Language Industry Intelligence
In Your Inbox. Every Friday

SUBSCRIBE

SlatorSweepSlatorPro
ResearchRFP CENTER

PUBLISH

PRESS RELEASEDIRECTORY LISTING
JOB ADEVENT LISTING

Bespoke advisory including speaking, briefings and M&A

SLATOR ADVISORY
Advertisement

Featured Reports

See all
Slator 2020 Language Industry M&A and Funding Report

Slator 2020 Language Industry M&A and Funding Report

by Slator

Slator 2021 Data-for-AI Market Report

Slator 2021 Data-for-AI Market Report

by Slator

Slator 2020 Medtech Translation and Localization Report

Slator 2020 Medtech Translation and Localization Report

by Slator

Pro Guide: Sales and Marketing for Language Service Providers

Pro Guide: Sales and Marketing for Language Service Providers

by Slator

Press Releases

See all
iDISC Awarded ISO 27001 Information Security Management Certification

iDISC Awarded ISO 27001 Information Security Management Certification

by iDISC

XTRF Launches a Bi-Monthly Free Networking Event for Localization Professionals

XTRF Launches a Bi-Monthly Free Networking Event for Localization Professionals

by XTRF

150 Million Words Translated: the German EU Council Presidency Translator Sets New Records

150 Million Words Translated: the German EU Council Presidency Translator Sets New Records

by Tilde

Upcoming Events

See All
  1. Memsource MT Post-Editing Pricing Models Webinar

    Pricing Models for MT Post-Editing Workshop

    by Memsource

    · February 3

    Hear a panel of innovative localization professionals share different approaches for MT post-editing pricing.

    More info FREE

Featured Companies

See all
Text United

Text United

Memsource

Memsource

Wordbank

Wordbank

Protranslating

Protranslating

Seprotec

Seprotec

Versacom

Versacom

SDL

SDL

Smartling

Smartling

Lingotek

Lingotek

XTM International

XTM International

Smartcat

Smartcat

Translators without Borders

Translators without Borders

STAR Group

STAR Group

memoQ Translation Technologies

memoQ Translation Technologies

Advertisement

Popular articles

Why Netflix Shut Down Its Translation Portal Hermes

Why Netflix Shut Down Its Translation Portal Hermes

by Esther Bond

The Slator 2020 Language Service Provider Index

The Slator 2020 Language Service Provider Index

by Slator

Top Language Industry Quotes of 2020

Top Language Industry Quotes of 2020

by Monica Jamieson

SlatorPod: The Weekly Language Industry Podcast

connect with us

footer logo

Slator makes business sense of the language services and technology market.

Our Company

  • Support
  • About us
  • Terms & Conditions
  • Privacy Policy

Subscribe to the Slator Weekly

Language Industry Intelligence
In Your Inbox. Every Friday

© 2021 Slator. All rights reserved.

Sign up to the Slator Weekly

Join over 13,000 subscribers and get the latest language industry intelligence every Friday

Your information will never be shared with third parties. No Spam.