Quarterly financial information at September 30, 2020 IFRS –
Regulated information – Not audited
Cegedim: A return to growth in the third quarter of
2020
- Like-for-like revenues grew 1.9% in the third quarter of
2020
- All divisions contributed to growth
- Owing to the spike in Covid-19 cases, we are unable to confirm
our targets for revenues and for recurring operating income1 at
this time
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Boulogne-Billancourt, France, October 28, 2020, after
the market close
Cegedim, an innovative
technology and services company, posted consolidated Q3 2020
revenues of €118.9 million, up 0.4 % on a reported basis and 1.9%
like for like compared with the same period in 2019. Thus,
after an increase in Q1 and a decrease in Q2, consolidated 9M 2020
revenues came to €355.1 million, down 2.5% on a reported
basis and 1.1% like for like compared with the same period
in 2019.
Revenue trends by division
·Third quarter 2020
|
|
Third quarter |
In € million |
|
2020 |
2019 |
LFL chg. |
Reported chg. |
Health insurance,
HR and e-services |
|
80.9 |
79.6 |
+1.6% |
+1.6% |
Healthcare
professionals |
|
37.1 |
38.0 |
+2.1% |
(2.4)% |
Corporate and
others |
|
1.0 |
0.8 |
+14.7% |
+14.7% |
Cegedim |
|
118.9 |
118.4 |
+1.9% |
+0.4% |
The €1.6 million hit from scope effects in Q3,
or 1.4pp, was due to the sale of nearly all of the business
activities of Pulse Systems Inc. in the US in August 2019.
On a like-for-like basis, Health insurance, HR
and e-services division revenues rose 1.6%, and those of the
Healthcare professionals division, 2.1%.
·First nine months of 2020
|
|
First nine months |
In € million |
|
2020 |
2019 |
LFL chg. |
Reported chg. |
Health insurance,
HR and e-services |
|
241.2 |
242.1 |
(1.3)% |
(0.4)% |
Healthcare
professionals |
|
111.3 |
119.6 |
(0.8)% |
(7.0)% |
Corporate and
others |
|
2.7 |
2.6 |
+5.0% |
+5.0% |
Cegedim |
|
355.1 |
364.2 |
(1.1)% |
(2.5)% |
Over the first nine months of 2020, the €5.0
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 1.3% like for like, and those of the Healthcare
professionals division, 0.8%.
Analysis of business trends by division
·Health insurance, HR and
e-services
The division’s reported revenues rose
1.6% as reported and like for like in the third quarter of
2020, to €80.9 million. Acquisitions and
divestments had virtually no impact.
The third-quarter performance was primarily the
result of growth at Cegedim Health Data (healthcare sector data and
analytics), Cegedim e-business (document and process digitization),
and Cegedim SRH (HR management solutions). Third-party payments
activities in the insurance sector are back on a par with last
year.
Over the first nine months of 2020 the
division’s revenues fell 0.4% as reported and 1.3% like for like to
€241.2 million. The acquisitions of NetEDI and Cosytec made a
positive contribution equivalent to 0.9% of consolidated revenues.
Currencies had virtually no impact.
·Healthcare professionals
The division’s reported revenues fell
2.4% in the third quarter of 2020 to €37.1 million.
Divestments had a negative impact of 4.3 percentage points.
Like-for-like revenues grew by 2.1%.
The third-quarter performance is chiefly the
result of strong growth at Maiia (teleconsultation and online
scheduling solutions). Other activities are back on a par with last
year.
Over the first nine months of 2020 the
division’s revenues fell 7.0% as reported and 0.8% like for like to
€111.3 million.
The 4.3pp hit from scope effects in the third
quarter, or €1.6 million, and the 6.0pp hit in the first nine
months, or €7.2 million, was chiefly due to the sale of nearly all
of the business activities of Pulse Systems Inc. in August
2019.
·Corporate and others
Q3 2020 division revenues came to €1.0
million, up 14.7% on a reported basis and like for like.
Currency translation, acquisitions and divestments had no
impact.
Highlights
With the exception of the Covid-19 pandemic,
whose impacts are presented in the Interim Financial Report in note
4 on pages 51 to 53, during the third quarter of 2020 and to the
best of the company’s knowledge there were no events or changes
that would materially alter the Group’s financial situation.
Significant post September
30th transactions and
events
·Acquisition of a minority stake in
ClamaeCegedim has acquired a minority stake of 34% in the
Clamae Group via a €6 million reserved capital increase. Clamae has
a subsidiary that specializes in innovative payment systems made
possible under the EU’s PSD2 framework. The technologies Clamae has
developed will be put to good use in nearly all of Cegedim Group’s
products and services (health insurance products, data management
and digitization, and apps for healthcare professionals).
To the best of the company’s knowledge, except
for the aforementioned, there were no events or changes after
September 30th that would materially alter the Group’s financial
situation.
Outlook
The coming announcement of a severe tightening
of public health restrictions related to the Covid-19 pandemic has
forced the Group to suspend its targets for revenues and recurring
operating income2.
The Group does not expect any material
acquisitions in 2020 and does not provide earnings estimates or
forecasts.
Additional information
Third-quarter 2020 revenue figures have not been
audited by the Statutory Auditors. The Audit Committee met on
October 27, 2020, and the Board of Directors—chaired by Jean-Claude
Labrune—met on October 28, 2020.
2020-2021 Financial calendar
2020 |
December 15 from 2:30pm to 6 pmVirtual
Capital Markets Day |
For
the first time, this event will take place entirely virtually owing
to the Covid-19 pandemic. More details to follow. Registration is
now open at: https://bit.ly/3ok1t4G |
2021 |
January 26 after the market closeMarch
18 after the market closeMarch 19
April 27 after the market closeJune
17 July 27 after the market
closeSeptember 16 after the mkt.
closeSeptember 17October 28 after
the market close |
2020 revenues2020 earningsSFAF analyst meetingQ1 2021
revenuesCegedim shareholders’ meetingQ2 2021 revenuesH1 2021
earningsSFAF analyst meetingQ3 2021 revenues |
The third-quarter 2020 revenue 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
Annexes
Breakdown of revenue by quarter and
division
·Fiscal year 2020
in € thousands |
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Health insurance, HR and e-services |
|
82,667 |
77,655 |
80,860 |
|
241,183 |
|
Healthcare
professionals |
|
37,977 |
36,170 |
37,120 |
|
111,267 |
|
Corporate and
others |
|
852 |
878 |
959 |
|
2,689 |
|
Consolidated Group revenue |
|
121,496 |
114,703 |
118,939 |
|
355,138 |
|
·Fiscal 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 |
|
95.3% |
4.7% |
0.0% |
Healthcare
professionals |
|
65.3% |
34.4% |
0.3% |
Corporate and
others |
|
100.0% |
0.0% |
0.0% |
Cegedim |
|
85.9% |
14.0% |
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 |
|
96.0% |
3.1% |
0.0% |
0.9% |
Healthcare
professionals |
|
70.5% |
26.4% |
0.1% |
3.0% |
Corporate and
others |
|
100.0% |
0.0% |
0.0% |
0.0% |
Cegedim |
|
88.0% |
10.4% |
0.0% |
1.6% |
Breakdown of revenue by division
as a % of
consolidated revenues |
|
9M 2020 |
9M 2019 |
Health insurance, HR and e-services |
|
67.9% |
66.5% |
Healthcare
professionals |
|
31.3% |
32.8% |
Corporate and
others |
|
0.8% |
0.7% |
Cegedim |
|
100.0% |
100.0% |
Glossary
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.Current operating
income: The Group’s operating income includes all revenues
and expenses directly related to Group activities, whether these
revenues and expenses are recurring or arise from non-recurring
decisions or transactions.“Other non-recurring operating income and
expenses” consists of unusual items, notably as concerns their
nature or frequency, that could distort the assessment of Group
entities’ financial performance. 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.Consequently, Cegedim monitors its
operating performance using “Recurring operating income”(REBIT),
defined as the difference between total operating income and other
non-recurring operating income and expenses. Recurring operating
income (REBIT) is an intermediate line item intended to facilitate
understanding of the Group’s operating performance and as a way to
estimate recurring performance. This indicator is presented in a
manner that is consistent and stable over the long term in order to
ensure the continuity and relevance of financial
information. |
|
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 October 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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