Cegedim: Like-for-like revenue grew 3.3% over Q1 2020
Quarterly financial information as of March 31, 2020 IFRS -
Regulated information - Not audited
Cegedim: Like-for-like revenue grew 3.3% over Q1
2020
Boulogne-Billancourt, France, April 27, 2020, after the
market close
Cegedim, an innovative
technology and services company, generated consolidated Q1 2020
revenues of €121.5 million, an increase of 1.9% as reported
and 3.3% like-for-like compared with the same period in 2019. All
the operating divisions made positive year-on-year contributions to
the Group’s like-for-like growth.
Group revenue trends, consolidated
|
|
First quarter |
in € million |
|
2020 |
2019 |
Chg. LFL |
Chg. Reported |
Health insurance,
HR and e-services |
|
82.7 |
79.2 |
+3.0% |
+4.3% |
Healthcare
professionals |
|
38.0 |
39.1 |
+4.1% |
(2.9)% |
Corporate and
others |
|
0.9 |
0.9 |
(3.4)% |
(3.4)% |
Cegedim |
|
121.5 |
119.2 |
+3.3% |
+1.9% |
Excluding a favorable currency translation
impact of 0.1% and an unfavorable scope effect of 1.5%, revenues
rose 3.3%.
The €1.8 million drag from scope effects, or
1.5%, was chiefly due to the sale of virtually all the business
activities of Pulse Systems Inc in the US in August 2019, partly
offset by the acquisition of Cosytec in France in July 2019, and
that of NetEDI in the UK in August 2019.
BPO activities for the insurance and human
resources business generated revenues totaling €12.3 million over
Q1 2020, a 6.4% improvement compared with Q1 2019.
Covid-19 pandemic
Faced with the covid-19 pandemic—and its impact
on the economy—Cegedim has activated its business continuity plans,
is working to keep its employees and customers safe, and is closely
following the situation’s impact on its business activities.
The Group has a solid business model focusing to
a large extent on the healthcare sector, a robust financial
situation with a reasonable amount of leverage(1), no debt maturing
before October 2024, an undrawn €45 million revolving credit
facility, and an unused €24 million overdraft facility.
Since the lockdown began, Cegedim has been
developing a host of tools to help fight the covid-19 pandemic.
Notably:
- Cegedim Logiciels Médicaux has equipped four covid-19 emergency
centers in the Centre-Val de Loire region for teleconsultation
using its MLM web-based solution—Loches, Amboise, Châteauroux, and
a regional telehealth facility (set up to lessen contact with the
other covid-19 centers)—and did so in record time.
- Maiia has developed a prescription-writing module, essential
for effective teleconsultation, and is making it available to
clients free of charge.
- Cegedim e-business offers a simplified version of its
digitization solution, SY by Cegedim. This offering manages
companies’ invoices and can be installed within 24 hours.
- The GERS and THIN teams are supplying health authorities with
healthcare consumption data covering private practices and
hospitals in France.
- The Cegedim SRH teams are assisting companies using partial
unemployment for their teams, notably helping to adapt the pay
slips of affected employees and making all the adjustments required
by the recent measures.
Analysis of business trends by division
·Health insurance, HR and
e-services
The division’s reported revenues rose 4.3% in Q1
2020 to €82.7 million. Currencies had virtually no impact.
Acquisitions had a favorable impact of 1.3%. Like-for-like revenues
rose 3.0% over the period. Over Q1 2020, acquisitions had a
positive contribution of 1.3%, or €1.0 million, mainly from NetEDI
and Cosytec. This division represented 68.0% of consolidated Q1
2020 revenues compared with 66.5% a year earlier.
The businesses that made the biggest
contributions to this growth over the quarter were the BPO activity
in the health insurance sector, Cegedim e-business (document and
process digitization), and Cegedim SRH (HR management solutions).
It is worth noting that Cegedim-Media (digital and conventional
communications solutions in pharmacies) remained flat during the
period.
·Healthcare professionals
The division’s reported revenues decreased 2.9%
in Q1 2020 to €38.0 million. Currency translation had a positive
impact of 0.2%. Acquisitions and disposals had a negative impact of
7.2%. Like-for-like revenues rose 4.1% over the period. Over Q1
2020, the 7.2% negative impact from acquisitions and disposals, or
€2.8 million, was mainly due to the sale of virtually all the
business activities of Pulse Systems Inc in the US in August 2019.
The division represented 31.3% of consolidated FY 2019 revenues
compared with 32.8% a year earlier.
The businesses that made the biggest positive
contributions over the quarter were computerization solutions for
doctors and allied health professionals in France, the appointment
scheduling and remote consultation activities of Maiia (formerly
Docavenue), and RESIP (the BCB medication database). It is worth
noting that computerization solutions for UK doctors and pharmacies
remained flat during the period.
·Corporate and others
The division’s revenues fell 3.4% as reported
and like for like in Q1 2020, to €0.9 million.
Highlights
With the exception of the covid-19 pandemic
mentioned at the top of the press release and to the best of the
company’s knowledge, there were no events or changes during the
first quarter of 2020 that would materially alter the Group’s
financial situation.
Significant transactions and events post March 31,
2020
With the exception of the covid-19 pandemic
mentioned at the top of the press release, 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
At this stage of the covid-19 pandemic, it is
too early to gauge the full impact (positive and negative) on the
Group’s 2020 revenues and recurring operating income(2).
Additional information
First quarter 2020 revenue figures have not been
audited by the Statutory Auditors.
The first quarter 2020 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.
2020 Financial calendar
Please note that the release of H1 2020 earnings has been
postponed from Thursday September 17 to Thursday September 24,
2020.
WEBCAST ON APRIL 27, 2020, AT 6:15 PM PARIS
TIME |
FR : +33 1 72 72 74 03 |
USA : +1 646 722 4916 |
UK : +44 (0)207 1943 759 |
PIN CODE: 32447828# |
The webcast is available at:
www.cegedim.fr/webcast |
|
June 17 at 9:30 am CETJuly 28
after the market closeSeptember 24 after the
market closeSeptember 25 at 10:00 am
CETOctober 28 after the market
closeNovember time to be determined |
Cegedim shareholders’ meetingSecond quarter 2020 revenueFirst half
2020 resultsAnalyst meeting (SFAF) in SFAF’s officesThird quarter
2020 revenuesCegedim’s Investor day |
(1)The leverage ratio is EBITDA(2) to the net
financial debt(2).(2) Alternative performance indicator
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 |
|
|
|
82,667 |
|
Healthcare
professionals |
|
37,977 |
|
|
|
37,977 |
|
Corporate and
others |
|
852 |
|
|
|
852 |
|
Consolidated Group revenue |
|
121,496 |
|
|
|
121,496 |
|
·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 March 31, 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 |
|
67.5% |
32.1% |
0.4% |
Corporate and
others |
|
100.0% |
0.0% |
0.0% |
Cegedim |
|
86.5% |
13.4% |
0.1% |
Breakdown of revenue by currency and
division
·As of March 31, 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 |
|
72.6% |
24.3% |
0.2% |
2.9% |
Corporate and
others |
|
100.0% |
0.0% |
0.0% |
0.0% |
Cegedim |
|
88.6% |
9.9% |
0.1% |
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.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 April 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 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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