Cegedim: Like-for-like revenues fell 2.5% in the first half of 2020
Quarterly financial information as of June 30, 2020 IFRS -
Regulated information - Not audited
Cegedim: Like-for-like revenues fell 2.5% in the first
half of 2020.
- 3.3 % like-for like revenue growth in the first quarter of
2020
- A like-for-like revenue decline of 8.0% in the second quarter
of 2020
- Group aiming for relatively stable full-year 2020 revenues year
on year
Boulogne-Billancourt, France, July 28, 2020, after the
market close
Cegedim, an innovative technology and
services company, generated consolidated Q2 revenues of €114.7
million in 2020, a decrease of 9.4% as reported and 8.0% like for
like compared with the same period in 2019. After posting
growth in the first quarter, Cegedim generated consolidated H1
revenues of €236.2 million in 2020, a decrease of 3.9% as reported
and 2.5% like for like compared with the same period in 2019.
Revenue trends
·Second quarter of 2020
|
|
Second quarter |
in € million |
|
2020 |
2019 |
LFL change |
Reported change |
Health insurance,
HR and e-services |
|
77.7 |
83.3 |
-8.1% |
-6.7% |
Healthcare
professionals |
|
36.2 |
42.5 |
-7.9% |
-14.8% |
Corporate and
others |
|
0.9 |
0.8 |
+4.2% |
+4.2% |
Cegedim |
|
114.7 |
126.6 |
-8.0% |
-9.4% |
Cegedim’s Q2-20 consolidated revenues came to
€114.7 million, down 9.4% as reported. Excluding an unfavorable
currency translation impact of 0.2pp and an unfavorable scope
effect of 1.2pp, revenues fell 8.0%.
The unfavorable currency translation impact of
€0.2 million, or 0.2pp was mainly attributable to appreciation of
the pound sterling, which represents 11.2% of Group revenues,
against the euro.
The €1.6 million hit from scope effects, or
1.2pp, was chiefly due to the sale of nearly all of the business
activities of Pulse Systems Inc. in the US in August 2019, which
was partly offset by the acquisitions of Cosytec in France in July
2019 and NetEDI in the UK in August 2019.
On a like-for-like basis, Health insurance, HR
and e-services division revenues fell 8.1%, and those of the
Healthcare professionals division, 7.9%.
·First half 2020
|
|
First half |
in € million |
|
2020 |
2019 |
LFL change |
Reported change |
Health insurance,
HR and e-services |
|
160.3 |
162.5 |
-2.7% |
-1.3% |
Healthcare
professionals |
|
74.1 |
81.6 |
-2.2% |
-9.1% |
Corporate and
others |
|
1.7 |
1.7 |
+0.3% |
+0.3% |
Cegedim |
|
236.2 |
245.8 |
-2.5% |
-3.9% |
Cegedim’s H1 2020 consolidated revenues came to
€236.2 million, down 3.9% as reported. Currencies had virtually no
impact. Excluding an unfavorable scope impact of 1.4pp, revenues
fell 2.5%.
The €3.4 million hit from scope effects, or
1.4pp, was chiefly due to the sale of nearly all of the business
activities of Pulse Systems Inc. in the US in August 2019, which
was partly offset by the acquisitions of Cosytec in France in July
2019 and NetEDI in the UK in August 2019.
Health insurance, HR and e-services division
revenues fell 2.7% like for like, and those of the Healthcare
professionals division, 2.2%.
Covid-19 pandemic
Faced with the covid-19 pandemic—and its impact
on the European economy—the Group has activated its business
continuity plans and is closely following the situation’s impact on
its business activities. Work-from-home arrangements were activated
in every country during the lockdown period. We were able to
continue operating under satisfactory conditions, with no service
interruptions, although volumes did decline in some activities,
actions in the field were cancelled or postponed, and sales efforts
generally slowed during the lockdown. Employees were encouraged to
take paid leave during the period. The use of partial unemployment,
which affected a limited number of teams, ended at the close of the
first half.
Analysis of business trends by division
·Health insurance, HR and
e-services
After growing in the first quarter, the
division’s reported revenues fell 6.7% in the second quarter of
2020 to €77.7 million. Like-for-like revenues fell 8.1% over the
second quarter. Thus, the division’s reported revenues fell 1.3% in
the first half of 2020 to €160.3 million. Like-for-like revenues
fell 2.7% over the period.
The H1 performance was chiefly attributable to
the drop in second-quarter business at Cegedim-Media (communication
solutions for pharmacies, including digital solutions) and from the
decreased volume of third-party healthcare payments. That
performance was partly offset by the expansion of health insurance
sector BPO activities and business growth at Cegedim SRH (HR
management solutions), Cegedim e-business (document and process
digitization), and Cegedim Health Data (healthcare sector data and
analytics).
The acquisitions of NetEDI and Cosytec made a
positive contribution to Group consolidated revenue of 1.4pp to
second quarter and first half 2020 growth. Currencies had virtually
no impact on second quarter and first half 2020 figures.
·Healthcare professionals
After growing in the first quarter, the
division’s reported revenues fell 14.8% in the second quarter of
2020 to €36.2 million. Currency translation had a positive impact
of 0.4 percentage points. Divestments had a negative impact of 6.5
percentage points. Like-for-like revenues fell 7.9%. Thus, the
division’s reported revenues fell 9.1% in the first half of 2020 to
€74.1 million. Currency translation had a positive impact of 0.1
percentage points. Divestments had a negative impact of 6.8
percentage points. Like-for-like revenues fell 2.2%.
The 6.5pp hit from scope effects in the second
quarter, or €2.8 million, and the 6.8pp hit in the first half, or
€5.6 million, was chiefly due to the sale of nearly all of the
business activities of Pulse Systems Inc. in August 2019.
The first half performance reflects growth in
the first quarter offset by the negative second-quarter impact of
lockdowns on activity related to pharmacy businesses in France and
the UK. The appointment scheduling and teleconsultation business,
Maiia, has experienced very brisk growth, as have RESIP (BCB
medication database) and RM Ingénierie (allied health professional
computerization in France).
· Corporate and
others
The division’s reported revenues rose 4.2% both
as reported and like for like in the second quarter of 2020, to
€0.9 million. Currencies and acquisitions had no impact. The
division’s reported revenues rose 0.3% as reported and like for
like in the first half of 2020, to €1.7 million.
Highlights
With the exception of the covid-19 pandemic discussed above, to
the best of the company’s knowledge, there were no events or
changes during the first half of 2020 that would materially alter
the Group’s financial situation.
Significant transactions and events post June 30,
2020
With the exception of the covid-19 pandemic discussed above, to
the best of the company’s knowledge, there were no events or
changes after the closing on June 30, 2020, that would materially
alter the Group’s financial situation.
Outlook
The Group has a solid business model, a robust
financial situation with a reasonable amount of leverage(1), no
debt maturing before October 2024, an undrawn €55 million revolving
credit facility, and an unused €24 million overdraft facility.
Because the Group operates overwhelmingly in the
healthcare sector and expects activity to catch back
up—particularly in third-party payments and at C-Media—Cegedim is
looking for relatively stable revenues in full-year 2020 relative
to 2019. This outlook may need adjustment if health conditions in
Europe significantly deteriorate in the second half of 2020.
The Group does not expect any material
acquisitions in the second half of 2020 and does not provide
earnings estimates or forecasts.
Additional information
Second-quarter 2020 revenue figures have not
been audited by the Statutory Auditors. The presentation can be
found:
− On the website:
https://www.cegedim.fr/finance/documentation/Pages/presentations.aspx
− And on the
Cegedim IR smartphone app:
https://www.cegedim.fr/finance/profil/Pages/CegedimIR.aspx
Financial calendar
Please note that the H1 2020 earnings announcement has been
postponed until Thursday, September 24, 2020.
September 24 after the closeSeptember
25 at 10:00 amOctober 28 after the
closeDecember 15 (time t.b.a.) |
First-half 2020 resultsAnalyst meeting (SFAF) in SFAF’s
officesThird-quarter 2020 revenuesCegedim’s Investor Day |
WEBCAST ON JULY 28, 2020, AT 6:15 P.M. (PARIS
TIME) |
FR: +33 1 72 72 74 03 |
USA: +1 646 722 4916 |
UK: +442071943759 |
PIN CODE 56782118# |
The webcast is available at:
www.cegedim.fr/webcast |
(1) Leverage is equal to EBITDA(2) divided by
net debt(2)(2) Alternative performance indicators
EBITDA 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.
Net financial debt comprises
gross borrowings, including accrued interest and debt restatement
at amortized cost less cash and cash equivalents.
Annexes
Breakdown of revenue by quarter and
division
·Year 2020
in € thousands |
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Health insurance, HR and e-services |
|
82,667 |
77,655 |
|
|
160,322 |
|
Healthcare
professionals |
|
37,977 |
36,170 |
|
|
74,147 |
|
Corporate and
others |
|
852 |
878 |
|
|
1,730 |
|
Consolidated Group revenue |
|
121,496 |
114,703 |
|
|
236,199 |
|
·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 |
|
Consolidated Group revenue |
|
119,222 |
126,574 |
118,435 |
139,514 |
503,745 |
|
Breakdown of revenue by geographic zone and
division
·As of June 30, 2020
as a % of
consolidated revenues |
|
France |
EMEA excl. France |
Americas |
Health insurance, HR and e-services |
|
95.1% |
4.9% |
0.0% |
Healthcare
professionals |
|
65.3% |
34.4% |
0.3% |
Corporate and
others |
|
100.0% |
0.0% |
0.0% |
Cegedim |
|
85.8% |
14.1% |
0.1% |
Breakdown of revenue by currency and
division
·As of June 30, 2020
as a % of
consolidated revenues |
|
Euro |
GBP |
USD |
Others |
Health insurance, HR and e-services |
|
95.8% |
3.3% |
0.0% |
0.9% |
Healthcare
professionals |
|
70.3% |
26.5% |
0.1% |
3.1% |
Corporate and
others |
|
100.0% |
0.0% |
0.0% |
0.0% |
Cegedim |
|
87.8% |
10.5% |
0.0% |
1.6% |
Revenue trends by division
as a % of
consolidated revenues |
|
H1 2020 |
H1 2019 |
Health insurance, HR and e-services |
|
67.9% |
66.1% |
Healthcare
professionals |
|
31.4% |
33.2% |
Corporate and
others |
|
0.7% |
0.7% |
Cegedim |
|
100.0% |
100.0% |
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.Operating margin: Operating
margin is defined as the ratio of Operating Income on
revenue.Recurring Operating margin: Recurring
Operating margin is defined as the ratio of Recurring Operating
income on 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 July 28, 2020, no earlier than 5:45 pm
Paris time. 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 7 “Risk management”, point 7.2, “Risk factors”, and Chapter
3 “Overview of the financial year” point 3.6 “Outlook”, of the 2019
Universal Registration Document filled with the AMF on March 31,
2020 under number D.20-0218. |
|
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 & Irène SemerarosuPRMedia
RelationsTel: +33 (0)6 52 08 13 66 +33 (0)6 80 80 83
97cegedim@supr-agency.com |
|
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