Quarterly Financial Information as of March 31, 2019 IFRS -
Regulated Information - Not Audited
Cegedim: Growth picked up speed in the first quarter of
2019
- Like-for-like revenue grew 4.6%
- Growth accelerated at the Health insurance, HR and e-services
division
- Healthcare professionals division revenues grew in Q1
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 May 15, 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". |
CONFERENCE CALL ON MAY 15, 2019, AT 6:15PM
CET |
FR: +33 1 72 72 74 03 |
USA: +1 844 286 0643 |
UK: +44 (0) 207 1943 759 |
PIN Code: 85432790# |
|
The webcast is available at:
www.cegedim.fr/webcast |
Boulogne-Billancourt, France, May 15, 2019 after the
market close
Cegedim, an innovative
technology and services company, generated consolidated Q1-19
revenues of €119.2 million, an increase of 6.5% as reported and
4.6% 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.
BPO revenues rose 25% in the first quarter of
2019 to €10.6 million.
Revenue trends by division
|
|
First quarter |
In € million |
|
2019 |
2018 |
Chg. L-f-l |
Chg. Reported |
Health insurance,
HR and e-services |
|
79.2 |
72.9 |
+6.4% |
+8.7% |
Healthcare
professionals |
|
39.1 |
38.0 |
+1.7% |
+2.8% |
Corporate and
others |
|
0.9 |
1.0 |
(10.8)% |
(10.8)% |
Cegedim |
|
119.2 |
111.9 |
+4.6% |
+6.5% |
In the first quarter of 2019, Cegedim posted
consolidated Group revenues of €119.2 million, up 6.5% as reported.
Excluding a positive impact of 0.3% from currency translation and
1.6% from acquisitions, revenues rose 4.6%.
The positive impact of €0.4 million, or 0.3%,
was mainly attributable to US dollar appreciation, which represents
2.4% of Group revenue, and the virtual stability of the Sterling,
which represents 9.4% of Group revenue.
The €1.8 million boost from acquisitions, or
1.6%, was chiefly the result of acquiring Rue de la paye in France
on March 30, 2018, and of Ximantix in Germany on January 21,
2019.
In like-for-like terms, all the divisions made
positive contributions to like-for –like growth. The Health
insurance, HR and e-services division’s revenues rose 6.4% and the
Healthcare professionals division’s revenues, 1.7%.
Analysis of business trends by division
- Health insurance, HR and e-services
The division’s reported revenues rose
8.7% in the first quarter of 2019 to €79.2 million. Acquisitions
accounted for 2.3 percentage points. The biggest contributors
were Rue de la Paye in France,
consolidated from March 30, 2018, and
Ximantix in Germany, consolidated from
January 21, 2019. Currencies had virtually no impact. Like-for-like
revenues rose 6.4% over the period.
The businesses that made the biggest
contributions to this growth were Cegedim Health Data (sales data
and statistics for pharmaceuticals), and—in the health insurance
sector—BPO, third-party payment flow processing activities, Cegedim
e-business (document and process digitization) and Cegedim SRH (HR
management solutions).
The Health insurance, HR and e-services division
represented 66.5% of revenues compared with 65.1% a year
earlier.
The division’s reported revenues rose
2.8% in the first quarter of 2019 to €39.1 million. Currency
translation and acquisitions had positive impacts of respectively
0.9 and 0.2 percentage points. Like-for-like revenues rose 1.7%
over the period.
The businesses that made the biggest positive
contributions were software for doctors and allied health
professionals in France and Belgium and the BCB medication
database. Doctor computerization business was steady in the UK and
US.
The Healthcare professionals division
represented 32.8% of revenues compared with 34.0% a year
earlier.
The division’s reported revenues fell
10.8% as reported and like for like in the first quarter of 2019,
to €0.9 million. Currencies and acquisitions had no
impact.
The Corporate and others division represented
0.7% of consolidated revenues compared with 0.9% a year
earlier.
Highlights
Apart from the items cited below, to the best of
the company’s knowledge, there were no events or changes during the
period that would materially alter the Group’s financial
situation.
- Acquisition of XimantiX in Germany
On January 21, 2019, Cegedim acquired German
company XimantiX. Building on its presence in the digitalization
market in Belgium, France, the United Kingdom, and Morocco, Cegedim
now has a solid base for this activity in Germany, Europe’s leading
economy. By acquiring a German leader positioned on the midmarket
segment, Cegedim e-business will be able to develop its offer for
SMEs. XimantiX customers will gain access to a wider range of
services, thanks to Cegedim’s international scope.
XimantiX’s 2018 revenues came to €2.2 million,
and it earned a profit. It began contributing to the Group’s
consolidation scope in January 2019.
- Acquisition of RDV médicaux in France
On February 2019, Cegedim acquired French
company RDV Médicaux, an online appointment scheduling site whose
close collaboration with hotlines gives it a unique positioning.
This deal clearly reaffirms Docavenue’s ambition to help healthcare
professionals focus on patient care by offering innovative services
that are 100% designed to improve the French healthcare system. RDV
Médicaux’s 2018 revenues came to €0.6 million. It began
contributing to the Group’s consolidation scope in March 2019.
- Acquisition of BSV in France
On January 31, 2019, Cegedim acquired BSV
Electronic Publishing, the leading provider of invoice digitization
solutions to French municipalities and widely respected for its
successful Electronic Document Management System (EDMS). BSV’s
ZeDOC software suite includes electronic document management--a
dynamic data capture tool that sets it apart from a conventional
EDMS based on document indexing--Optical Character Recognition
(OCR) and Automatic Document Recognition (ADR).
BSV Electronic Publishing generated revenue of
€1.2 million in 2018. It began contributing to the Group’s
consolidation scope in February 2019.
Significant post March
31th, 2019 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 operates in constantly changing markets,
and its strategic refocus is complete. The Group boasts solid
fundamentals, a balanced portfolio of complementary offerings, a
diverse client base, a broad geographic footprint, and the strength
of an integrated group. These factors should enable it to sustain
its current momentum and reach a new stage in its development where
it can deliver lasting, profitable growth. Building on 2018,
Cegedim continues to follow a strategy primarily focused on organic
growth and driven by robust innovation.
The Group has set a target of around 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 expects UK policy
to be only marginally affected by 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
First-quarter 2019 revenue figures have not been
audited by the Statutory Auditors.
Financial calendar
|
June 19, 2019, at 9:30 am CET July 25,
2019, after the market close 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 Second quarter 2019 revenues Half
year earnings 2019 Analyst meeting (SFAF) in SFAF’s offices Third
quarter 2019 revenues |
|
|
The first quarter 2019 revenue presentation is available at: The
website:
https://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 |
Annexes
Breakdown of revenue by quarter and
division
In € thousands |
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Health insurance, HR and e-services |
|
79,239 |
|
|
|
79,239 |
|
Healthcare
professionals |
|
39,100 |
|
|
|
39,100 |
|
Corporate and
others |
|
882 |
|
|
|
882 |
|
Revenue
from continuing activities |
|
119,222 |
|
|
|
119,222 |
|
Revenue from
activities held for sale |
|
0 |
|
|
|
0 |
|
IFRS 5
restatement |
|
0 |
|
|
|
0 |
|
Group revenue |
|
119,222 |
|
|
|
119,222 |
|
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 a % of consolidated revenues |
|
France |
EMEA excl. France |
Americas |
APAC |
Health insurance, HR and e-services |
|
96.1% |
3.9% |
- |
- |
Healthcare
professionals |
|
61.4% |
31.2% |
7.4% |
- |
Corporate and
others |
|
100.0% |
- |
- |
- |
Cegedim |
|
84.7% |
12.9% |
2.4% |
- |
Breakdown of revenue by currency and
division
As a % of consolidated revenues |
|
Euro |
GBP |
USD |
Others |
Health insurance, HR and e-services |
|
96.7% |
2.3% |
0.0% |
0.9% |
Healthcare
professionals |
|
65.8% |
24.1% |
7.2% |
2.9% |
Corporate and
others |
|
100.0% |
- |
- |
- |
Cegedim |
|
86.6% |
9.4% |
2.4% |
1.6% |
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. 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 4,500 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.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 |
Marina
RosoffFor Madis Phileo
Media RelationsTel: +33 (0)6 71 58 00
34marina@madisphileo.com |
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