Quarterly financial information at March 31,
2017
IFRS - Regulated information - Not audited
Cegedim: organic revenue growth
continued to pick up in the first quarter of 2017
-
The business model transformation continues, in
line with Group expectations
-
Like-for-like revenues rose 6.9% in Q1
2017
-
FY 2017 targets maintained
Disclaimer: This press release is available in
French and in English. In the event of any difference between the
two versions, the original French version takes precedence. This
press release may contain inside information. It was sent to
Cegedim's authorized distributor on April 27, no earlier than 5:45
pm Paris time. The following terms are defined in the
Glossary. |
Conference CALL on April 27, 2017, at 6:15PM
CET |
FR: +33 1 70 77 09 41 |
USA: +1 855 402 7761 |
UK: +44 (0)20 3367 9461 |
No access code required |
The webcast is available at the following
address: http://bit.ly/2pVsxZY |
Boulogne-Billancourt, France,
April 27, 2017 after the market close
Cegedim, an innovative technology
and services company, posted consolidated Q1 2017 revenues of
€113.7 million, up 7.1% on a reported basis and 6.9% like-for-like
compared with the same period in 2016.
The business model transformation
initiated in fall 2015 is beginning to pay off, as shown by the
increase in like-for-like revenue growth to 6.9% in the first
quarter of 2017 after a 5.4% rise in the fourth quarter of
2016.
Like-for-like revenue growth at
the Health insurance, HR and e-services
division continued at almost the same pace as the 13.0% posted in
Q4 2016, at 12.5% in Q1 2017. All of the division's activities
contributed to the growth.
The Healthcare
professionals division posted a like-for-like decline of 0.9%
in Q1 2017. The transformation plan should have a beneficial impact
on division revenues starting in Q4 2017.
The execution of the
transformation plan, the development of a complete BPO offering,
the switch over to SaaS format and recent R&D efforts will
enhance customer loyalty, create closer client relationships,
simplify operating processes, and strengthen our offerings and
geographic positions. As the business model transformation is well
under way, we expect to see the full impact of this transformation
in 2018.
Part of this growth was related to
the BPO business, and these activities will continue to negatively
affect Group profitability in 2017.
Revenue trends by
division
|
|
First quarter |
In € millions |
|
2017 |
2016 |
Chg. LFL |
Chg. Reported |
Health
insurance, HR and e-services |
|
68.6 |
59.7 |
+12.5% |
+14.9% |
Healthcare professionals |
|
44.0 |
45.7 |
(0.9)% |
(3.6)% |
Activities not allocated |
|
1.1 |
0.8 |
+32.8% |
+32.8% |
Cegedim |
|
113.7 |
106.2 |
+6.9% |
+7.1% |
In the first quarter of 2017,
Cegedim posted consolidated Group revenues of
€113.7 million, up 7.1% on a reported basis. Excluding an
unfavorable currency translation effect of 1.3% and a 1.5% boost
from acquisitions, revenues rose 6.9%.
The unfavorable currency
translation effect of €1.4 million, or 1.5%, was chiefly due to the
€1.5 million negative impact of the pound sterling, which
represents 11.1% of revenues.
The €1.6 million positive impact
from acquisitions, or 1.5%, was due to the acquisition of Futuramedia in France in November
2016.
In like-for-like terms, the
Health Insurance, HR and e-services division's
revenues rose by 12.5%, whereas the Healthcare
professionals division's revenues fell by 0.9%.
Analysis of business trends by
division
The division's Q1
2017 revenues came to €68.6 million, up 14.9% on a reported basis.
The November 2016 Futuramedia acquisition in France
made a positive contribution of 2.6%. Currency effects made a
negative contribution of 0.2%. Like-for-like revenues rose 12.5%
over the period.
The Health
insurance, HR and e-services division
represented 60.3% of consolidated Group revenues, compared with
56.2% over the same period a year earlier.
All of the businesses in this
division contributed to growth in the first quarter. More
specifically:
-
Cegedim Insurance
Solutions, with its iGestion BPO offering
for health insurance companies and mutual insurers, posted
double-digit growth on the back of a ramp-up in contracts signed in
2015 and 2016. It continued to post robust growth in the third
party payment flow management activity, and generated slight growth
in software and services devoted to the personal protection
insurance sector despite the impact of transitioning to SaaS
format.
-
The start of operations with new clients of the
digital data exchange platform, Global Information
Services, which includes payment platforms, enabled Cegedim e-business to post double-digit growth.
-
The start of operations with numerous clients on
the Cegedim SRH SaaS platform for human
resources management resulted in double-digit revenue growth over
the quarter.
The division's Q1
2017 revenues came to €44.0 million, down 3.6% on a reported basis.
Currency effects made a negative contribution of 2.7%. The impact
of the March 1, 2017, acquisition of B.B.M. Systems in the UK was
negligible. Like-for-like revenues fell 0.9% over the
period.
The Healthcare professionals division
represented 38.7% of consolidated Group revenues, compared with
43.0% over the same period a year earlier
The decline in first-quarter 2017
revenues was chiefly attributable to:
· Clients
in certain markets, are increasingly turning to cloud-based and
SaaS offerings;
· In the
UK another decline in doctor computerization revenues. On the other
hand, the market eagerly welcomed the launch of the first products
sold in SaaS format.
·
· In
France, the market welcomed the new Smart Rx
offering for French pharmacists. The order book grew but is
unlikely to impact revenues before the end of the year.
-
In the US, Pulse's business
experienced a clear decline owing to a challenging comparison with
the previous year, which will continue through end-June owing to
the reorganization that began in July 2016.
This decline was partly offset
by:
-
Double-digit growth in products and services
designed for physical therapists and nurses in France.
-
Double-digit growth in the financial lease
business, Cegelease.
The division's Q1
2017 revenues came to €1.1 million, up 32.8% on a reported basis
and like for like. There were no currency effects and no
acquisitions or divestments.
The Activities not allocated division
represented 0.9% of consolidated Group revenues, compared with 0.7%
over the same period a year earlier.
This trend reflects a favorable
comparison.
Highlights
To the best of the company's
knowledge, apart from the items cited below, there were no events
or changes after the accounts were closed that would materially
alter the Group's financial situation.
On February 10, 2017, Cegedim was ordered to pay €4,636,000 to the Tessi
company for failing to meet certain obligations with respect to an
asset sale made on July 2, 2007.
Cegedim has decided to appeal this
decision.
Cegedim,
jointly with IMS Health, is being sued by Euris for unfair
competition. Cegedim has filed a motion
claiming that IMS Health should be the sole defendant.
To hedge part of its exposure to
euro interest rate fluctuations arising from its RCF, the Group
carried out an interest rate swap on February 17, 2017. Under the
zero-premium swap agreement, Cegedim receives the 1-month Euribor
rate if it exceeds 0%, receives nothing otherwise, and pays a fixed
rate of 0.2680%.
On February 23, 2017, Cegedim acquired UK company B.B.M. Systems through its
Alliadis Europe Ltd subsidiary. The deal
strengthens the Group's expertise in developing cloud-based
products for general practitioners.
B.B.M. Systems had 2016 revenues
of around €0.7 million and earned a profit. It contributes to the
Group's scope of consolidation from March 1, 2017.
In keeping with the wishes of
BPIFrance, Ms. Anne-Sophie Hérelle has been appointed to replace
Ms. Valérie Raoul-Desprez on the Board of Directors. The permanent
representative of BPIFrance, is now Ms. Marie Artaud-Dewitte,
Deputy Head of Legal Affairs at Bpifrance Investissements. She
replaces Ms. Anne-Sophie Hérelle.
Significant post-closing
transactions and events
To the best of the company's
knowledge, there were no events or changes after the accounts were
closed that would materially alter the Group's financial
situation.
Outlook
Cegedim
continues to reinvent itself in 2017, pursuing innovation and
investing in the future by transforming its business model. The
business model transformation is well under way, so growth momentum
is expected to pick up in Q4 2017 and lead to improving
profitability in the future.
Cegedim
reiterates its expectations for 2017:
Cegedim
expects to see the full positive impact of its investments,
reorganization and transformation in 2018.
The Group does not expect any
significant acquisitions in 2017 and does not disclose earnings
projections or estimates.
In 2016, the UK accounted for
12.7% of consolidated Group revenues and 14.8% of consolidated
Group EBIT.
Cegedim deals
in local currency in the UK, as it does in every country where it
is present. Thus Brexit is unlikely to have a material impact on
Group EBIT.
With regard to healthcare policy,
the Group has not identified any major European programs at work in
the UK and expects UK policy to be only marginally affected by
Brexit.
Starting in 2017, Cegedim will publish only half-year and full-year
results. It will, however, continue to publish revenues quarterly.
The next results will be for the period ending June 30, 2017, and
will be announced September 21, 2017, after the market closes.
The figures cited above include
guidance on Cegedim's future financial
performances. This forward-looking information is based on the
opinions and assumptions of the Group's senior management at the
time this press release is issued and naturally entails risks and
uncertainty. For more information on the risks facing Cegedim, please refer to points 2.4, "Risk factors and
insurance", and 3.7, "Outlook", of the 2016 Registration Document
filed with the AMF on March 29, 2017, under number D.17-0255.
|
June 15, 2017, at 9:30 am CET
July 27, 2017, after market closing
September 21, 2017, after market
closing
September 22, 2017, at 2:30 pm
October 26, 2017, after market closing |
Shareholders' meeting
Q2 2017 revenues
Half-year 2017 earnings
Analyst meeting (SFAF)
Q3 2017 revenues |
Financial calendar
April 27, 2017, at 6:15pm
(Paris time) |
The Group
will hold a conference call hosted by Jan Eryk Umiastowski, Cegedim
Chief Investment Officer and Head of Investor Relations.
The webcast is available at the following address:
http://bit.ly/2pVsxZY
The first quarter 2017 revenue presentation is available
at:
The website:
http://www.cegedim.fr/finance/documentation/Pages/presentations.aspx
The Group's financial communications app, Cegedim IR. To download
the app, visit:
http://www.cegedim.fr/finance/profil/Pages/CegedimIR.aspx |
Contact numbers: |
France: +33 1 70 77 09 41
United States:
+1 855 402 7761
UK and others: +44 (0)20 3367 9461 |
No access code required |
Additional information
The Audit
Committee met on April 26, 2017. The Board of Directors met on
April 27, 2017, and reviewed the Q1 2017 revenue figures. Q1 2017
revenue figures have not been audited by the Statutory
Auditor. |
|
Annexe
Breakdown of revenue by quarter
and division
In € thousands |
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Health insurance, HR and e-services |
|
68,606 |
- |
- |
- |
68,606 |
|
Healthcare professionals |
|
44,045 |
- |
- |
- |
44,045 |
|
Activities not allocated |
|
1,054 |
- |
- |
- |
1,054 |
|
Cegedim |
|
113,705 |
- |
- |
- |
113,705 |
|
In € thousands |
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Health insurance, HR and e-services |
|
59,728 |
64,847 |
60,607 |
77,143 |
262,325 |
|
Healthcare professionals |
|
45,687 |
43,676 |
41,459 |
44,404 |
175,226 |
|
Activities not allocated |
|
793 |
778 |
770 |
954 |
3,295 |
|
Cegedim |
|
106,208 |
109,301 |
102,836 |
122,501 |
440,846 |
|
Breakdown of revenue by
geographic zone and division
In € thousands |
|
France |
EMEA excl. France |
Americas |
APAC |
Health insurance, HR and e-services |
|
96.9% |
3.1% |
- |
- |
Healthcare professionals |
|
60.8% |
30.2% |
9.0% |
- |
Activities not allocated |
|
99.1% |
0.9% |
- |
- |
Cegedim |
|
82.9% |
13.6% |
3.5% |
- |
Breakdown of revenue by currency
and division
In € thousands |
|
Euro |
USD |
GBP |
Others |
Health insurance, HR and e-services |
|
96.9% |
2.1% |
- |
1.0% |
Healthcare professionals |
|
64.6% |
25.4% |
8.9% |
1.0% |
Activities not allocated |
|
100.0% |
- |
- |
- |
Cegedim |
|
84.4% |
11.1% |
3.5% |
1.0% |
Activities not allocated: This
division encompasses the activities the Group performs as the
parent company of a listed entity, as well as the support it
provides to the three operating divisions.
BPO (Business Process Outsourcing): BPO is the
contracting of non-core business activities and functions to a
third-party provider. Cegedim provides BPO services for human
resources, Revenue Cycle Management in the US and management
services for insurance companies, provident institutions and mutual
insurers.
Business model transformation: Cegedim decided
in fall 2015 to switch all of its offerings over to SaaS format, to
develop a complete BPO offering, and to materially increase its
R&D efforts. This is reflected in the Group's revamped business
model. The change has altered the Group's revenue recognition and
negatively affected short-term profitability
EPS: Earnings Per Share is a specific
financial indicator defined by the Group as the net profit (loss)
for the period divided by the weighted average of the number of
shares in circulation.
Operating expenses: Operating expenses is
defined as purchases used, external expenses and payroll
costs.
Revenue at constant exchange rate: When
changes in revenue at constant exchange rate are referred to, it
means that the impact of exchange rate fluctuations has been
excluded. The term "at constant exchange rate" covers the
fluctuation resulting from applying the exchange rates for the
preceding period to the current fiscal year, all other factors
remaining equal.
Revenue on a like-for-like basis: The effect
of changes in scope is corrected by restating the sales for the
previous period as follows:
-
by removing the portion of sales originating in
the entity or the rights acquired for a period identical to the
period during which they were held to the current period;
-
similarly, when an entity is transferred, the
sales for the portion in question in the previous period are
eliminated.
Life-for-like data (L-f-l): At constant scope
and exchange rates.
Internal growth: Internal growth covers growth
resulting from the development of an existing contract,
particularly due to an increase in rates and/or the volumes
distributed or processed, new contracts, acquisitions of assets
allocated to a contract or a specific project. |
|
External growth: External growth
covers acquisitions during the current fiscal year, as well as
those which have had a partial impact on the previous fiscal year,
net of sales of entities and/or assets.
EBIT: Earnings Before Interest and Taxes. EBIT
corresponds to net revenue minus operating expenses (such as
salaries, social charges, materials, energy, research, services,
external services, advertising, etc.). It is the operating income
for the Cegedim Group.
EBIT before special items: This is EBIT
restated to take account of non-current items, such as losses on
tangible and intangible assets, restructuring, etc. It corresponds
to the operating income from recurring operations for the Cegedim
Group.
EBITDA: Earnings before interest, taxes,
depreciation and amortization. EBITDA is the term used when
amortization or depreciation and revaluations are not taken into
account. "D" stands for depreciation of tangible assets (such as
buildings, machines or vehicles), while "A" stands for amortization
of intangible assets (such as patents, licenses and goodwill).
EBITDA is restated to take account of non-current items, such as
losses on tangible and intangible assets, restructuring, etc. It
corresponds to the gross operating earnings from recurring
operations for the Cegedim Group.
Adjusted EBITDA : Consolidated EBITDA
adjusted, for 2016, for the €4.0m of negative impact from
impairment of receivables in the Healthcare Professional
division
Net Financial Debt: This represents the
Company's net debt (non-current and current financial debt, bank
loans, debt restated at amortized cost and interest on loans) net
of cash and cash equivalents and excluding revaluation of debt
derivatives.
Free cash flow: Free cash flow is cash
generated, net of the cash part of the following items: (i) changes
in working capital requirements, (ii) transactions on equity
(changes in capital, dividends paid and received), (iii) capital
expenditure net of transfers, (iv) net financial interest paid and
(v) taxes paid.
EBIT margin: EBIT margin is defined as the
ratio of EBIT/revenue.
EBIT margin before special
items: EBIT margin before special items is defined as the ratio
of EBIT before special items/revenue.
Net cash: Net cash is defined as cash and cash
equivalent minus overdraft.
|
Glossary
About Cegedim:
Founded in 1969, Cegedim is an innovative technology and services
company in the field of digital data flow management for healthcare
ecosystems and B2B, and a business software publisher for
healthcare and insurance professionals. Cegedim employs more than
4,000 people in 11 countries and generated revenue of €441 million
in 2016. Cegedim SA is listed in Paris (EURONEXT: CGM).
To learn more, please visit: www.cegedim.com
And follow Cegedim on Twitter: @CegedimGroup
|
Aude Balleydier
Cegedim Media
Relations
and Communications Manager
Tel.: +33 (0)1 49 09 68 81
aude.balleydier@cegedim.com |
Jan Eryk Umiastowski
Cegedim
Chief Investment Officer
and head of Investor Relations
Tel.: +33 (0)1 49 09 33 36
janeryk.umiastowski@cegedim.com |
Anne Pezet
PRPA Agency
Media Relations
Tel.: +33 (0)1 46 99 69 69
anne.pezet@prpa.fr |
Cegedim_TO_1Q2017
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The issuer of this announcement warrants that they are solely
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information contained therein.
Source: Cegedim SA via Globenewswire
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