Cegedim: Revenue grew by 7.7% in FY 2019
Quarterly financial information as of December 31, 2019 IFRS -
Regulated information - Not audited
Cegedim: Revenue grew by 7.7% in FY 2019
- Like-for-like revenues grew 7.0% over FY 2019
- Like-for-like revenues grew 6.5% over Q4 2019
Boulogne-Billancourt, France, January 27, 2020, after
the market close
Cegedim, an innovative
technology and services company, generated consolidated full year
revenues of €503.7 million in 2019, an increase of 7.7% as
reported and 7.0% like-for-like compared with the same period in
2018. All the operating divisions made positive year-on-year
contributions to the Group’s like-for-like growth
Group revenue trends, consolidated and by
division
·Full year 2019
|
|
Full year |
in € million |
|
2019 |
2018 |
Chg. LFL |
Chg. Reported |
Health insurance,
HR and e-services |
|
340.5 |
307.7 |
+8.6% |
+10.7% |
Healthcare
professionals |
|
159.8 |
156.2 |
+4.2% |
+2.3% |
Corporate and
others |
|
3.4 |
3.8 |
(10.2)% |
(10.2)% |
Cegedim |
|
503.7 |
467.7 |
+7.0% |
+7.7% |
Excluding a favorable currency translation
impact of 0.1% and a favorable scope effect of 0.6%, revenues rose
7.0%.
The €2.6 million boost from scope effects, or
0.6%, was chiefly due to the acquisition of Ximantix in Germany on
January 21, 2019, BSV in France on January 31, 2019, Cosytec in
France in July 2019, and that of NetEDI in the United Kingdom,
partly offset by the sale of virtually all the business activities
of Pulse Systems Inc in the United States in August 2019. Pulse
Systems contributed €11.3million to the Group’s consolidated
revenue in 2018 and €7.4 million in 2019.
BPO activities for the insurance and human
resources business generated revenues totaling €45.5 million over
the full year 2019, a 26.8% improvement compared with 2018.
·Fourth Quarter 2019
|
|
Fourth quarter |
in € million |
|
2019 |
2018 |
Chg. LFL |
Chg. Reported |
Health insurance,
HR and e-services |
|
98.4 |
86.5 |
+11.3% |
+13.8% |
Healthcare
professionals |
|
40.2 |
43.7 |
(2.5)% |
(8.1)% |
Corporate and
others |
|
0.9 |
1.0 |
(11.7)% |
(11.7)% |
Cegedim |
|
139.5 |
131.2 |
+6.5% |
+6.3% |
Cegedim’s Q4-2019 consolidated revenues came to
€139.5 million, up 6.3% as reported. Excluding a favorable currency
translation impact of 0.2% and an unfavorable scope effect of 0.4%,
revenues rose 6.5%.
The unfavorable scope impact of €0.5 million, or
0.4%, was mainly attributable to the acquisitions of Ximantix in
Germany on January 21, 2019, BSV in France on January 31, 2019,
Cosytec in France in July 2019, and that of NetEDI in United
Kindown, offset by the sale of virtually all the business
activities of Pulse Systems Inc in the United States in
August 2019.
Analysis of business trends by division
·Health insurance, HR and
e-services
The division’s reported revenues rose 10.7% in
the full year 2019 to €340.5 million. Currencies had virtually no
impact. Acquisitions had a favorable impact of 2.0%. Like-for-like
revenues rose 8.6% over the period. Over the full year 2019,
acquisitions’ positive contribution of 2.0%, or €6.2 million, came
mainly from Ximantix, BSV, NetEDI and Cosytec. This division
represented 67.6% of consolidated FY 2019 revenues compared with
65.8% a year earlier.
The businesses that made the biggest
contributions to this growth in 2019 were—in the health insurance
sector—BPO and third-party payment flow processing activities,
Cegedim e-business (document and process digitization), Cegedim SRH
(HR management solutions), Cegedim Health Data (data and analytics
for the healthcare market), and Cegedim-Media (digital and
conventional communications solutions in pharmacies).
·Healthcare professionals
The division’s reported revenues rose 2.3% in
the full year 2019 to €159.8 million. Currency translation had a
positive impact of 0.4%. Acquisitions and disposals had a negative
impact of 2.3%. Like-for-like revenues rose 4.2% over the period.
Over the full year 2019, the 2.3% negative impact from acquisitions
and disposals, or €3.6 million, was mainly due to the sale of
virtually all the business activities of Pulse Systems Inc in the
United States in August 2019. This division represented 31.7% of
consolidated FY 2019 revenues compared with 33.4% a year
earlier.
The businesses that made the biggest positive
contributions over the year were computerization solutions for
doctors and allied health professionals in France, for pharmacists
in the United Kingdom and Romania, for appointment scheduling and
remote consultations (Docavenue), and for doctors in Romania and
the UK.
The decrease in Q4-19 revenues was the result of
a challenging comparison caused by one-off sales to the NHS
recorded in the fourth quarter in 2018 and in the second quarter in
2019.
·Corporate and others
The division’s revenues fell 10.2% as reported
and like for like in the full year 2019, to €3.4 million.
Highlights
To the best of the company’s knowledge, apart
from the items listed below, there were no events or changes during
the fourth quarter of 2019 that would materially alter the Group’s
financial situation.
·Tessi lawsuitOn September 17,
2019, the Paris Court of Appeals overturned the Commercial Court’s
ruling and reduced Cegedim’s penalty for financial damages
resulting from the breach of a contract of sale to €2,857,693 from
€4,586,000. Tessi repaid Cegedim the sum of €1,694,678 during the
fourth quarter of 2019.
Significant transactions and events post December 31,
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
For the full year 2019, the Group had expected
like-for like growth above 5%. Cegedim recorded full year 2019
like-for-like revenue growth of 7.0%.
The Group is clarifying its 2019 objective for
EBITDA* growth. Apart from the positive impact of the first
application of IFRS 16, EBITDA growth should be in line with the
growth recorded in revenue.
The Group will communicate its 2020 outlook when
it releases its 2019 results on March 19, 2020, after the market
close.
The Group does not expect to make any
significant acquisitions in 2020.
Lastly, the Group does not provide earnings
forecasts.
·Potential impact of Brexit
In 2018, the UK accounted for 10.0% of
consolidated Group revenues and 9.9% of consolidated Group EBITDA*.
In 2019, the UK accounted for 9.8% of consolidated Group
revenues.
Cegedim deals in local currency in the UK.
Brexit is unlikely to have a material impact on Group EBITDA*.
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.
Additional information
Fourth quarter 2019 and full year 2019 revenue
figures have not been audited by the Statutory Auditors.
The fourth 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:
https://www.cegedim.com/finance/profile/Pages/cegedimir.aspx.
(*) Alternative performance
indicatorEBITDA is equivalent to
recurring operating income plus net depreciation and amortization
expenses.“Recurring operating income” is defined
as the difference between operating income and other non-recurring
operating income and expenses.“Other non-recurring
operating income and expenses” may include impairment of
tangible assets, goodwill, and other intangible assets, gains or
losses on disposals of non-current assets, restructuring costs, and
costs relating to workforce adaptation measures.
2020 Financial calendar
WEBCAST ON OCTOBER 24, 2019, AT 6:15 PM PARIS
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|
March 19 after the market closeMarch
20 at 10:00 am CETApril 27 after the
market closeJune 17 at 9:30 am CETJune
25 time to be defined laterJuly 28 after
the market closeSeptember 17 after the market
closeSeptember 18 at 10:00 am CETOctober
28 after the market close |
2019 resultsAnalyst meeting (SFAF) in Cegedim’s auditoriumFirst
quarter 2020 revenueCegedim shareholders’ meetingCegedim’s investor
daySecond quarter 2020 revenueFirst half 2020 resultsAnalyst
meeting (SFAF) in SFAF’s officesThird quarter 2020 revenues |
Annexes
Breakdown of revenue by quarter and
division
·Year 2019
in € thousands |
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Health insurance, HR and e-services |
|
79,239 |
83,260 |
79,585 |
98,444 |
340,527 |
|
Healthcare
professionals |
|
39,100 |
42,472 |
38,014 |
40,201 |
159,788 |
|
Corporate and
others |
|
882 |
842 |
836 |
869 |
3,430 |
|
Revenue
from continuing activities |
|
119,222 |
126,574 |
118,435 |
139,514 |
503,745 |
|
Revenue from
activities held for sale |
|
0 |
0 |
0 |
0 |
0 |
|
IFRS 5
restatement |
|
0 |
0 |
0 |
0 |
0 |
|
Group revenue |
|
119,222 |
125,574 |
118,435 |
139,514 |
503,745 |
|
·Year 2018
in € thousands |
|
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 of December 31, 2019
as a % of consolidated revenues |
|
France |
EMEA excl. France |
Americas |
APAC |
Health insurance, HR and e-services |
|
95.8% |
4.2% |
0.0% |
- |
Healthcare
professionals |
|
62.1% |
32.9% |
4.9% |
- |
Corporate and
others |
|
99.4% |
0.6% |
0.0% |
- |
Cegedim |
|
85.2% |
13.3% |
1.6% |
- |
Breakdown of revenue by currency and
division
·As of December 31, 2019
as a % of consolidated revenues |
|
Euro |
GBP |
USD |
Others |
Health insurance, HR and e-services |
|
96.5% |
2.6% |
0.0% |
0.9% |
Healthcare
professionals |
|
67.2% |
25.4% |
4.7% |
2.8% |
Corporate and
others |
|
100.0% |
0.0% |
2.8% |
0.0% |
Cegedim |
|
87.2% |
9.8% |
1.5% |
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 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.Operating expenses: Operating expenses
is defined as purchases used, external expenses and payroll
costs. |
Glossary
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 January 27, 2020, 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”.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. |
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 almost 5,000 people in more than 10 countries and generated
revenue in excess of €500 million in 2019. Cegedim SA is listed in
Paris (EURONEXT: CGM).To learn more, please visit:
www.cegedim.comAnd follow Cegedim on Twitter: @CegedimGroup,
LinkedIn and Facebook. |
Aude
BalleydierCegedim Media Relations and
Communications ManagerTel.: +33 (0)1 49 09 68
81aude.balleydier@cegedim.com |
Jan Eryk
UmiastowskiCegedimChief Investment
Officerand head of Investor RelationsTel.: +33 (0)1 49 09 33
36janeryk.umiastowski@cegedim.com |
Céline
Pardo &Inrène
SemerardsuPRMedia RelationsTel: +33 (0)6
52 08 13 66 +33 (0)6 80 80 83 97cegedim@supr-agency.com |
|
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