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
- Health insurance, HR and e-services
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.
- Partial interest rate hedging
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%.
- Acquisition of B.B.M. Systems in the UK
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.
- Changes to Cegedim SA's Board of Directors
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:
- Like-for-like revenue growth between 4.0% and 6.0%.
- EBITDA in a range of €66.0 million to €72.0 million
inclusive.
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.
- Potential impact of Brexit
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.comAnd follow Cegedim on Twitter: @CegedimGroup
|
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 |
Anne PezetPRPA
Agency Media RelationsTel.: +33 (0)1 46 99 69
69anne.pezet@prpa.fr |
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