Quarterly Financial Information as of June 30, 2018 IFRS -
Regulated Information - Not Audited
Cegedim: revenues rose in the second quarter of 2018
- Like-for-like revenues rose 1.8% in H1 2018, including 6.0%
growth in the Health insurance, HR and e-services division
- Outlook confirmed
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 26, 2017, no earlier than 5:45 pm Paris
time. The terms "business model transformation" and "BPO"
are defined in the glossary. Owing to the disposal of the
Group's Cegelease and Eurofarmat businesses, announced in 2017 and
completed on February 28, 2018, the consolidated 2017 and 2018
financial statements are presented according to IFRS 5,
"Non-current assets held for sale and discontinued". The Group also
applies the IFRS 15 accounting standard, "Revenue from contracts
with customers". See the annexes for more details |
Conference CALL on July 26, 2018, at 6:15PM
CET |
FR: +33 1 70 71 01 59 |
USA: +1 646 722 4916 |
UK: +44 20 7194 3759 |
PIN
Code: 38549355# |
|
The webcast is available at:
www.cegedim.fr/webcast |
Boulogne-Billancourt, France, July 26, 2018 after the market
close
Cegedim, an innovative technology and
services company, generated consolidated revenues from continuing
activities of €115.7 million in the second quarter of 2018, an
increase of 1.4% as reported and 1.1% like for like compared with
the same period in 2017.
In the first half of 2018, Cegedim posted
consolidated revenue from continuing activities of €227.6 million,
up 1.6% as reported and 1.8% like for like vs. H1 2017.
BPO revenues rose 14.0% in the second quarter of
2018 and totaled €17.9 million in the first half, an 11.2% increase
over the year-earlier period.
Revenue trends by division
- In the second quarter of 2018
|
|
Second quarter |
In €
million |
|
2018 |
2017 |
Chg. L-f-l |
Chg. Reported |
Health insurance, HR and
e-services |
|
76.6 |
71.7 |
+5.6% |
+6.9% |
Healthcare
professionals |
|
38.1 |
41.5 |
(6.8)% |
(8.1)% |
Corporate and others |
|
0.9 |
0.9 |
+1.5% |
+1.5% |
Cegedim |
|
115.7 |
114.1 |
+1.1% |
+1.4% |
In the second quarter of 2018, Cegedim posted
consolidated Group revenues from continuing activities of €115.7
million, up 1.4% as reported. Excluding a negative impact of 0.5%
from currency translation and an 0.8% boost from acquisitions,
revenues rose 1.1%.
The negative currency impact of €0.6 million, or
0.5%, was mainly attributable to adverse movements in the US
dollar, which represents 2.5% of Group sales, and Sterling, which
represents 9.7% of Group sales. Those movements erased €0.3 million
and €0.2 million respectively.
The €1.0 million boost from acquisitions, or
0.8%, was chiefly the result of acquiring Rue de la paye in France
on March 31, 2018.
In like-for-like terms, the Health insurance, HR
and e-services division's revenues rose 5.6% and the Healthcare
professionals division's revenues fell 6.8%.
- In the first half of 2018
|
|
Half-year |
In €
million |
|
2018 |
2017 |
Chg. L-f-l |
Chg. Reported |
Health insurance, HR and
e-services |
|
149.5 |
140.3 |
+6.0% |
+6.6% |
Healthcare
professionals |
|
76.2 |
88.1 |
(5.2)% |
(6.9)% |
Corporate and others |
|
1.9 |
2.0 |
(2.8)% |
(2.8)% |
Cegedim |
|
227.6 |
224.1 |
+1.8% |
+1.6% |
In the first half of 2018, Cegedim posted
consolidated Group revenues from continuing activities of €227.6
million, up 1.6% as reported. Excluding a negative impact of 0.7%
from currency translation and an 0.4% boost from acquisitions,
revenues rose 1.8%.
The negative currency impact of €1.5 million, or
0.7%, was mainly attributable to adverse movements in the US
dollar, which represents 2.5% of Group sales, and Sterling, which
represents 9.8% of Group sales. Those movements erased €0.8 million
and €0.6 million respectively.
The €0.9 million boost from acquisitions, or
0.4%, was chiefly the result of acquiring Rue de la Paye in France
on March 31, 2018.
In like-for-like terms, the Health insurance, HR
and e-services division's revenues rose 6.0% and the Healthcare
professionals division's revenues fell 5.2%.
Analysis of business trends by division
- Health insurance, HR and e-services
In the second quarter of 2018, division
revenues came to €76.6 million, up 6.9% as reported. The March
2018 Rue de la Paye acquisition in France made a
positive contribution equal to 1.4%. Currency translation had
virtually zero impact. Like-for-like revenues rose 5.6% over the
period.
In the first half of 2018, division revenues
came to €149.5 million, up 6.6% as reported. The Rue de la Paye
acquisition on March 31, 2018, in France made a positive
contribution equal to 0.7%. Currency translation had virtually zero
impact. Like-for-like revenues rose 6.0% over the period.
The Health insurance, HR and e-services division
represents 65.7% of consolidated revenues from continuing
activities, compared with 62.6% in the year-earlier period.
The businesses that made the strongest
contributions to growth over the first half were Cegedim SRH (HR
management solutions), Cegedim e-business (data flow and process
digitalization), sales statistics for pharmaceutical products, and
third-party payment systems in France.
In the second quarter of 2018, division
revenues totaled €38.1 million, down 8.1% as reported. Currency
translation had an adverse impact equal to 1.3%. There was
virtually no impact from acquisitions or divestments. Like-for-like
revenues fell 6.8% over the period.
First-half 2018 division revenues totaled €76.2
million, down 6.9% as reported. Currency translation had an adverse
impact equal to 1.7%. There was virtually no impact from
acquisitions or divestments. Like-for-like revenues fell 5.2% over
the period.
The Healthcare professionals division represents
33.5% of consolidated Group revenues from continuing activities
compared 36.5% in the year-earlier period.
As expected, over the first half, the division
was hampered by its doctor computerization businesses in the US,
the UK, and Spain as they prepare to launch new products whose
impact won't be felt until 2019.
The division's second quarter 2018 revenues
came to €0.9 million, up 1.5% both on a reported basis and like for
like. There were no currency effects and no acquisitions or
divestments.
The division's first half 2018 revenues came to
€1.9 million, down 2.8% both on a reported basis and like for like.
There were no currency effects and no acquisitions or
divestments.
The Corporate and others division represented
0.9% of consolidated revenues from continuing activities as of last
year.
Highlights
To the best of the company's knowledge, in Q2
2018 there were no events or changes that would materially alter
the Group's financial situation.
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
- Cautiously optimistic for 2018
Building on its successful actions in 2017,
Cegedim continues to pursue a strategy of focusing on organic
growth fueled by a policy of sustained innovation.
For 2018, the Group expects moderate organic
revenue growth and EBITDA margin improvement. Because part of the
improvement in EBITDA margin in the second half of 2017 was
structural, most of the margin improvement in 2018 will take place
in the first half.
The Group does not issue any earnings estimates
or forecasts
- Potential impact of Brexit
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 consolidated Group EBIT margin before
special items.
With regard to healthcare policy, the Group has
not identified any major European programs at work in the UK.
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 4.2,
"Risk factors and insurance", and 5.5, "Outlook", of the 2017
Registration Document filed with the AMF on March 29, 2018, under
number D.18-0219.
|
September 17, 2018, after market closing September 18,
2018, at 2:30 pm October 25, 2018, after market
closing |
Half-year 2018 earnings Analyst meeting (SFAF) Q3 2018
revenues |
Financial calendar
July 26, 2018, 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: www.cegedim.fr/webcast The second quarter 2018 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 |
Contact Numbers : |
France: +33 1 70 71 01 59 United States:
+1 646 722 4916UK and others: +44 20 7194 3759
|
PIN
Code : 38549355# |
Additional information
The
Q2 2018 revenue figure has not been audited by the Statutory
Auditors. Cegedim Group revenues take into account the initial
application of IFRS 15 on January 1, 2018. IFRS 15 does not
significantly alter the Group's revenues relative to the principles
and methods of revenue recognition used prior to its application.
The Group has put in place measurements and indicators to identify
significant contracts, as well as any changes in the
characteristics or volumes of business over time that may require
additional analysis in respect of IFRS 15. |
Annexes
Breakdown of revenue by quarter and division
In
€ thousands |
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Health insurance, HR and e-services |
|
72,923 |
76,613 |
|
|
149,537 |
|
Healthcare
professionals |
|
38,029 |
38,133 |
|
|
76,161 |
|
Corporate and others |
|
989 |
947 |
|
|
1,936 |
|
Revenue from continuing
activities |
|
111,941 |
115,693 |
|
|
227,633 |
|
Revenue from activities
held for sale |
|
2,066 |
0 |
|
|
2,066 |
|
IFRS 5 restatement |
|
(36) |
0 |
|
|
(36) |
|
Group revenue |
|
113,970 |
115,693 |
|
|
229,663 |
|
In
€ thousands |
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Health insurance, HR and e-services |
|
68,610 |
71,653 |
67,958 |
82,856 |
291,077 |
|
Healthcare
professionals |
|
40,320 |
41,495 |
37,999 |
42,672 |
162,486 |
|
Corporate and others |
|
1,058 |
933 |
961 |
926 |
3,878 |
|
Revenue from continuing
activities |
|
109,989 |
114,081 |
106,918 |
126,454 |
457,441 |
|
Revenue from activities
held for sale |
|
3,926 |
2,935 |
2,476 |
3,664 |
13,001 |
|
IFRS 5 restatement |
|
(209) |
(103) |
(100) |
(78) |
(490) |
|
Group revenue |
|
113,705 |
116,913 |
109,294 |
130,040 |
469,952 |
|
Breakdown of revenue by geographic zone and division
As
a % of consolidated revenues from continuing activities |
|
France |
EMEA excl. France |
Americas |
APAC |
Health insurance, HR and e-services |
|
97.0% |
3.0% |
- |
- |
Healthcare
professionals |
|
61.7% |
30.5% |
7.9% |
- |
Corporate and others |
|
100.0% |
- |
- |
- |
Cegedim |
|
85.2% |
12.2% |
2.6% |
- |
Breakdown of revenue by currency and division
As
a % of consolidated revenues from continuing activities |
|
Euro |
GBP |
USD |
Others |
Health insurance, HR and e-services |
|
97.0% |
2.0% |
0.0% |
1.0% |
Healthcare
professionals |
|
65.6% |
25.3% |
7.6% |
1.6% |
Corporate and others |
|
100.0% |
- |
- |
- |
Cegedim |
|
86.5% |
9.8% |
2.5% |
1.2% |
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 4,200 people in more than 10 countries and generated revenue
of €457 million in 2017. 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 |
Follow Cegedim:
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