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
Language Service Providers Outperform Global Stock Market

4 years ago

April 6, 2017

Language Service Providers Outperform Global Stock Market

Industry News ·

by Florian Faes

On April 6, 2017

4 years ago
Industry News ·

by Florian Faes

On April 6, 2017

Language Service Providers Outperform Global Stock Market

No one has yet created an ETF (exchange traded fund) to track the performance of the world’s listed language service providers. Given the pool of available companies, it is unlikely anyone ever will. However, investing in publicly listed language service providers has been a winning proposition this year and over the last 12 months.

While the the MSCI World (a broad measure of the world’s stock markets) is up 5.9% YTD and 16.4% over the last 12 months, for a group of nine listed language service providers those figures averaged 15.1% and 47.1%.

Annual revenues have somehow become the yardstick of choice in the language industry. But if revenues were such a good indicator of a company’s current and future performance, why is Tesla (USD 7bn in revenues) about to knock General Motors (USD 166bn in revenues) off the throne as America’s most valuable car company?

Advertisement

Now that the first quarter of 2017 is behind us, it is as good a time as any to check in on how shares in LSPs have performed recently, and what value investors assign to this select group of companies. Retaining its crown as the world’s most valuable listed LSP is UK-based patent translator RWS. The company recently appointed a new CEO and splurged on the acquisition of life sciences specialist LUZ.

After a strong bull run through the end of 2016, investors have taken a bit of a breather and the stock is down by almost 10% YTD. Still, RWS’ market capitalization weighs in at a hefty USD 891m.

Investors who bet early on game localizer Keywords Studios are now enjoying their time in the sun. The Dublin-based company again outperformed peers over the past 12 months, as shares surged over 200%. Keywords’ year-to-date rise of 36% has pushed its market cap near the half-billion-dollar mark.

SDL CEO Adolfo Hernandez has managed to convince investors that he is succeeding in turning around the UK-based language service provider. After a few acquisitions had turned sour, Hernandez was brought on board to refocus the company on its core: language services and technology.

The markets seem to agree with the new strategy, and SDL’s shares have been up 45% over the past 12 months. Meanwhile, the broader UK stock index FTSE 100 has been up 18% over the same period. SDL’s market cap is closing in on USD 600m.

SDL may just have a few more tricks up its sleeve to further drive the stock north. CFO Dominic Lavelle recently told Slator SDL’s “current operating model is not much younger than the age of the business itself” — and the company disclosed its internal translator army of hundreds spends less than half their time, well, translating. Higher internal productivity and the corresponding widening of the gross margin would filter down directly to the bottom line and likely support the stock this year.

So far in 2017, Australia’s Appen has given up some of the strong advances it made in 2016. Still, while the stock is down by about 7% this year, it is up nearly 60% over the last 12 months. A few investors probably decided to cash in on their gains. 

Smaller players like Honyaku, Summa Linguae, Yappn, and Rozetta also managed to eke out gains either over the past 12 months or this year. Only US-based Sajan (whose CEO recently blamed only himself for the company’s lackluster 2016 performance) is down both year-to-date and over the past 12 months.

Listed conglomerates operating language service units, such as Donnelley Financial or Teleperformance, were not included here as the majority of their business is not related to language services or technology. Twelve-month figures for Summa Linguae were not immediately available.

TAGS

Adolfo HernandezAppenDominic LavelleHonyaku CenterKeywords StudiosRWSSajanSDLSumma Linguaeyappn
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
Across Systems will be part of the Volaris Group

Across Systems will be part of the Volaris Group

by Across Systems GmbH

How Localex Made It Through the Pandemic

How Localex Made It Through the Pandemic

by Localex

Join Us for the First Virtual Together 2021 Next Month!

Join Us for the First Virtual Together 2021 Next Month!

by Elia

Upcoming Events

See All
  1. Handling Sensitive Information Webinar

    Handling Sensitive Calls with Limited English Proficient Consumers

    by Lionbridge

    · February 10

    Learn more about how Lionbridge Over-the-Phone Interpretation Services can help bridge communication gaps with limited...

    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

Top Language Industry Quotes of 2020

Top Language Industry Quotes of 2020

by Monica Jamieson

The Most Popular Language Industry Stories of 2020

The Most Popular Language Industry Stories of 2020

by Seyma Albarino

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.