Quarterly Financial Information as of June 30,
2018
IFRS - Regulated Information - Not Audited
Cegedim: revenues rose in the
second quarter of 2018
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
|
|
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%.
|
|
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
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
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
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
4916
UK 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.com
And follow Cegedim on Twitter: @CegedimGroup, LinkedIn and
Facebook.
|
Aude Balleydier
Cegedim Media
Relations
and Communications Manager
Tel.: +33 (0)1 49 09 68 81
aude.balleydier@cegedim.com |
Jan Eryk Umiastowski
Cegedim
Chief Investment Officer
and head of Investor Relations
Tel.: +33 (0)1 49 09 33 36
janeryk.umiastowski@cegedim.com |
Marina Rosoff
For Madis Phileo
Media Relations
Tel: +33 (0)6 71 58 00 34
marina@madisphileo.com |
Follow Cegedim:
|
Cegedim_Revenue_2Q2018_ENG
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Source: Cegedim SA via Globenewswire
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