Cegedim: Revenue grew in the second quarter of 2019
Quarterly financial information as of June 30, 2019 IFRS -
Regulated information - Not audited
Cegedim: Revenue grew in the second quarter of
2019
- Like-for-like revenues grew 8.2% over the quarter and 6.4 over
the H1
- Both operating divisions made positive contribution to
growth
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 July 25, 2019, no earlier than 5:45 pm
Paris time. The terms “business model
transformation” and “BPO” are defined in the glossary.
The Group applies the IFRS 15 accounting standard, “Revenue
from contracts with customers”. |
WEBCASE ON JULY 25, 2019, AT 6:15 PM PARIS
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Boulogne-Billancourt, France, July 25, 2019, after the
market close
Cegedim, an innovative
technology and services company, generated consolidated Q2 revenues
of €126.6 million in 2019, an increase of 9.4% as reported and 8.2%
like for like compared with the same period in 2018.
Cegedim generated consolidated H1 revenues of
€245.8 million in 2019, an increase of 8.0% as reported and 6.4%
like for like compared with the same period in 2018.
As in the first quarter, all the operating
divisions made positive year-on-year contributions to the Group’s
like-for-like growth in the second quarter.
BPO activities grew their revenues by 14.0% in
Q2-19 and reached €21.5 million over the first half, a 10.9%
improvement compared with 2018.
Revenue trends by division
|
|
Second quarter |
in € million |
|
2019 |
2018 |
Chg. L-f-l |
Chg. Reported |
Health insurance,
HR and e-services |
|
83.3 |
76.6 |
+7.5% |
+8.7% |
Healthcare
professionals |
|
42.5 |
38.1 |
+10.2% |
+11.4% |
Corporate and
others |
|
0.8 |
0.9 |
(11.1)% |
(11.1)% |
Cegedim |
|
126.6 |
115.7 |
+8.2% |
+9.4% |
Cegedim’s Q2-19 consolidated revenues came to
€126.6 million, up 9.4% as reported. Excluding a favorable currency
translation impact of 0.1% and a favorable scope effect of 1.1%,
revenues rose 8.2%.
The favorable currency translation impact of
€0.2 million, or 0.1%, was mainly attributable to appreciation of
the US dollar, which represents 2.2% of Group revenues, and
virtually no movement in the pound sterling, which represents
10.3%, against the euro.
The €1.2 million boost from scope effects, or
1.1%, was chiefly due to the acquisition of BSV in France on
January 31, 2019, and that of Ximantix in Germany on January 21,
2019.
In like-for-like terms, all of the divisions
improved. The Health insurance, HR and e-services division gained
7.5% and the Healthcare professionals division, 10.2%.
|
|
First half |
in € million |
|
2019 |
2018 |
Chg. L-f-l |
Chg. Reported |
Health insurance,
HR and e-services |
|
162.5 |
149.5 |
+6.9% |
+8.7% |
Healthcare
professionals |
|
81.6 |
76.2 |
+5.9% |
+7.1% |
Corporate and
others |
|
1.7 |
1.9 |
(10.9)% |
(10.9)% |
Cegedim |
|
245.8 |
227.6 |
+6.4% |
+8.0% |
Cegedim’s H1-19 consolidated revenues came to
€245.8 million, up 8.0% as reported. Excluding a favorable currency
translation impact of 0.2% and a favorable scope effect of 1.3%,
revenues rose 6.4%.
The favorable currency translation impact of
€0.5 million, or 0.2%, was mainly attributable to appreciation of
the US dollar, which represents 2.3% of Group revenues, and
virtually no movement in the pound sterling, which represents 9.9%,
against the euro.
The €3.0 million boost from scope effects, or
1.3%, was chiefly due to the acquisitions of BSV and Ximantix.
In like-for-like terms, all of the divisions
improved. The Health insurance, HR and e-services division gained
6.9% and the Healthcare professionals division, 5.9%.
Analysis of business trends by division
- Health insurance, HR and e-services
The division’s reported revenues rose
8.7% in the second quarter of 2019 to €83.3 million. Acquisitions
accounted for 1.2 percentage points. The main contributions came
from BSV and
Ximantix. Currencies had virtually no
impact. Like-for-like revenues rose 7.5% over the
period.
The division’s reported revenues rose 8.7% in
the first half of 2019 to €162.5 million. Acquisitions accounted
for 1.7 percentage points. The main contributions came from BSV and
Ximantix. Currencies had virtually no impact. Like-for-like
revenues rose 6.9% over the period.
The businesses that made the biggest
contributions to this growth in H1 were—in the health insurance
sector—BPO and third-party payment flow processing activities,
Cegedim Health Data (data and analytics for the healthcare market),
Cegedim e-business (document and process digitization), and Cegedim
SRH (HR management solutions).
The Health insurance, HR and e-services division
represented 66.1% of consolidated first half 2019 revenues compared
with 65.7% a year earlier.
The division’s reported revenues rose
11.4% in the second quarter of 2019 to €42.5 million. Currency
translation had a positive impact of 0.5 percentage points.
Acquisitions accounted for 0.7 percentage points. Like-for-like
revenues rose 10.2% over the period.
The division’s reported revenues rose 7.1% in
the first half of 2019 to €81.6 million. Currency translation had a
positive impact of 0.7 percentage points. Acquisitions had a
positive impact of 0.5 percentage points. Like-for-like revenues
rose 5.9% over the period.
The businesses that made the biggest positive
contributions in H1 were computerization solutions for doctors and
allied health professionals in France and for doctors in the UK,
and for doctors and pharmacists in Romania.
The Healthcare professionals division represented 33.2% of
consolidated Group revenues in the first half of 2019 compared with
33.5% a year earlier.
The division’s reported revenues fell
11.1% as reported and like for like in the second quarter of 2019,
to €0.8 million. Currencies and acquisitions had no
impact.
The division’s reported revenues fell 10.9% as
reported and like for like in the first half of 2019, to €1.7
million. Currencies and acquisitions had no impact.
The Corporate and others division represented
0.7% of consolidated Group revenues in the first half of 2019
compared with 0.9% a year earlier.
Highlights
To the best of the company’s knowledge, there
were no events or changes during the second quarter of 2019 that
would materially alter the Group’s financial situation.
Significant transactions and events post June 30,
2019
To the best of the company’s knowledge, there
were no post-closing events or changes that would materially alter
the Group’s financial situation.
Outlook
The Group has set a target, initially released
on March 27, 2019, of 5% growth in both like-for-like revenues and
EBITDA. In 2019, the Group does not expect any significant
acquisitions and is not issuing any earnings estimates or
forecasts.
- Potential impact of Brexit
In 2018, the UK accounted for 10.0% of
consolidated Group revenues from continuing activities and 9.9% 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
no contracts with entities in the UK contain clauses dealing with
Brexit.
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 Chapter 2, points 2.5,
“Risk factors and insurance”, and 2.7, “Outlook”, of the 2018
Registration Document filled with the AMF on March 29, 2019.
Additional information
Second quarter 2019 revenue figures have not
been audited by the Statutory Auditors.
Financial calendar
|
August 30, 2019, at 9:30 am CET September
19, 2019, after the market close September 20,
2019, at 11:30 am CET October 24, 2019,
after the market close |
Cegedim shareholders’ meeting First half 2019 results Analyst
meeting (SFAF) in SFAF’s offices Third quarter 2019 revenues |
|
|
The second quarter 2019 revenue presentation is available at:
- The website:
https://www.cegedim.com/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.
|
Annexes
Breakdown of revenue by quarter and
division
in € million |
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Health insurance, HR and e-services |
|
79,239 |
83,260 |
|
|
162,498 |
|
Healthcare
professionals |
|
39,100 |
42,472 |
|
|
81,572 |
|
Corporate and
others |
|
882 |
842 |
|
|
1,724 |
|
Revenue
from continuing activities |
|
119,222 |
126,574 |
|
|
245,795 |
|
Revenue from
activities held for sale |
|
0 |
0 |
|
|
0 |
|
IFRS 5
restatement |
|
0 |
0 |
|
|
0 |
|
Group revenue |
|
119,222 |
125,574 |
|
|
245,795 |
|
in € million |
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Health insurance, HR and e-services |
|
72,923 |
76,613 |
71,620 |
86,526 |
307,684 |
|
Healthcare
professionals |
|
38,029 |
38,133 |
36,291 |
43,731 |
156,184 |
|
Corporate and
others |
|
989 |
947 |
900 |
985 |
3,820 |
|
Revenue
from continuing activities |
|
111,941 |
115,693 |
108,811 |
131,242 |
467,688 |
|
Revenue from
activities held for sale |
|
2,066 |
0 |
0 |
0 |
2,066 |
|
IFRS 5
restatement |
|
(36) |
0 |
0 |
0 |
-36 |
|
Group revenue |
|
113,970 |
115,693 |
108,811 |
131,242 |
469,717 |
|
Breakdown of revenue by geographic zone and
division
as a % of consolidated revenues |
|
France |
EMEA excl. France |
Americas |
APAC |
Health insurance, HR and e-services |
|
96.2% |
3.8% |
0.0% |
- |
Healthcare
professionals |
|
60.7% |
32.3% |
7.0% |
- |
Corporate and
others |
|
100.0% |
0.0% |
0.0% |
- |
Cegedim |
|
84.5% |
13.2% |
2.3% |
- |
Breakdown of revenue by currency and
division
as a % of consolidated revenues |
|
Euro |
GBP |
USD |
Others |
Health insurance, HR and e-services |
|
96.9% |
2.2% |
0.0% |
0.9% |
Healthcare
professionals |
|
65.1% |
25.3% |
6.8% |
2.7% |
Corporate and
others |
|
100.0% |
0.0% |
0.0% |
0.0% |
Cegedim |
|
86.4% |
9.9% |
2.3% |
1.5% |
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.
Corporate and others: 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. 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. 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. 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. |
|
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. 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. 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. Life-for-like data (L-f-l): At
constant scope and exchange rates. Net cash: Net
cash is defined as cash and cash equivalent minus overdraft.
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.
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.
|
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 4,500 people in more than 10 countries and
generated revenue of €468 million in 2018. Cegedim SA is listed in
Paris (EURONEXT: CGM). To learn more, please visit: www.cegedim.com
And follow Cegedim on Twitter: @CegedimGroup, LinkedIn and
Facebook. |
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 |
Marina
Rosoff For Madis Phileo
Media Relations Tel: +33 (0)6 71 58 00 34
marina@madisphileo.com |
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