Quarterly financial information at September 30, 2018 IFRS -
Regulated information - Not audited
Cegedim: revenues rose in the third quarter of 2018
- Like-for-like revenue growth came to 1.5% over the first nine
months of 2018, including 5.3% growth at the Health insurance, HR
and e-services division
- Making a meaningful investment in telemedicine
- Outlook for 2018 adjusted
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 25, 2018, 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 IFRS 15, "Revenue from contracts with customers". See the
annexes for more details. |
CONFERENCE CALL on October 25, 2018, at 6:15 pm
(Paris time) |
FR: +33 1 72 72 74 03 |
US: +1 844 286 0643 |
UK: +44 20 7194 3759 |
PIN Code: 87847942# |
Webcast at: www.cegedim.fr/webcast |
Boulogne-Billancourt, France, October 25, 2018, after the
market close
Cegedim, an innovative technology and
services company, posted consolidated 9M 2018 revenues from
continuing activities of €336.4 million, up 1.6% on a reported
basis and 1.5% like for like compared with the same period in
2017.
In the third quarter of 2018, Cegedim posted
consolidated revenues from continuing activities of €108.8 million,
up 1.8% on a reported basis and 0.7% like for like compared with
the same period in 2017.
BPO revenues rose 7.9% in the third quarter of
2018, bringing the 9M figure to €26.6 million, a 10.1% increase
year on year.
In response to regulatory changes enacted
September 15, 2018, in the field of telemedicine, and in order to
position itself as a major telemedicine player in France, the Group
has decided to make a meaningful investment in its appointment
scheduling and remote consultation platform, Docavenue, currently
in the start-up phase. As a result, the Group is revising its 2018
profitability outlook marginally downward. Cegedim now expects
stable full-year EBITDA compared with 2017.
Revenue trends by division
- First nine months of 2018
|
|
First nine months |
In €
million |
|
2018 |
2017 |
LFL chg. |
Reported chg. |
Health insurance, HR and
e-services |
|
221.2 |
208.2 |
+5.3% |
+6.2% |
Healthcare
professionals |
|
112.5 |
119.8 |
-5.0% |
-6.1% |
Corporate and others |
|
2.8 |
3.0 |
-3.9% |
-3.9% |
Cegedim |
|
336.4 |
331.0 |
+1.5% |
+1.6% |
Over the first nine months of 2018, Cegedim
posted consolidated revenues from continuing activities of €336.4
million, up 1.6% as reported. Excluding a currency headwind of 0.4%
and a 0.6% boost from acquisitions, revenues rose 1.5%.
The €1.3 million negative currency translation
impact, or 0.4%, was chiefly due to the €0.8 million negative
impact of the US dollar, which represents 2.5% of Group revenues,
and the €0.5 million negative impact of the pound sterling, which
represents 9.9% of Group revenues.
The €1.9 million, or 0.6%, boost from
acquisitions was due mainly to the acquisition of French company
Rue de la Paye on March 31, 2018.
Like-for-like revenues rose 5.3% at the division
Health insurance, HR and e-services division and fell 5.0% at the
Healthcare professionals division.
|
|
Third quarter |
In €
million |
|
2018 |
2017 |
LFL chg. |
Reported chg. |
Health insurance, HR and
e-services |
|
71.6 |
68.0 |
+3.9% |
+5.4% |
Healthcare
professionals |
|
36.3 |
38.0 |
-4.8% |
-4.5% |
Corporate and others |
|
0.9 |
1.0 |
-6.4% |
-6.4% |
Cegedim |
|
108.8 |
106.9 |
+0.7% |
+1.8% |
In the third quarter of 2018, Cegedim posted
consolidated revenues from continuing activities of €108.8 million,
up 1.8% as reported. Excluding a 0.1% boost from currency and a
0.9% boost from acquisitions, revenues rose 0.7%.
The €1.0 million, or 0.9%, boost from
acquisitions was due mainly to the acquisition of French company
Rue de la Paye on March 31, 2018.
Like-for-like revenues rose 3.9% at the Health
insurance, HR and e-services division and fell 4.8% at the
Healthcare professionals division.
Analysis of business trends by division
- Health insurance, HR and e-services
Over the first nine months of 2018, division
revenues came to €221.2 million, up 6.2% on a reported basis. The
March 2018 acquisition of French company Rue de la Paye
boosted revenues by 0.9%. Currency translation had virtually no
impact. Like-for-like revenues rose 5.3% over the period.
The Health insurance, HR and e-services division
represents 65.7% of consolidated revenues from continuing
activities, compared with 62.9% a year ago.
Q3 2018 division revenues amounted to €71.6
million, a 5.4% reported increase. The March 31, 2018, acquisition
of Rue de la Paye in France had a positive impact equal to 1.5%.
Currency translation had virtually no impact. Like-for-like
revenues rose 3.9% over the period.
The businesses that made the strongest
contributions to growth over the first nine months were Cegedim SRH
(HR management solutions), sales statistics for pharmaceutical
products, Cegedim e-business (digitalization and data exchange),
and third-party payment flow management in France.
Over the first nine months of 2018, division
revenues came to €112.5 million, down 6.1% on a reported basis.
Currency translation had a negative impact of 1.0%. Acquisitions
and divestments had virtually no impact. Like-for-like revenues
fell 5.0% over the period.
The Healthcare professionals division represents
33.4% of consolidated revenues from continuing activities, compared
with 36.2% a year ago.
Q3 2018 division revenues amounted to €36.3
million, down 4.5% on a reported basis. Currency translation had a
positive impact of 0.4%. Acquisitions and divestments had virtually
no impact. Like-for-like revenues fell 4.8% over the period.
Over the first nine months of 2018, division
performance was hampered by the doctor computerization businesses
in the US and the UK - ahead of the release of new versions, whose
impact will not be felt until 2019 - and by the computerization of
pharmacists in France. By contrast, sales of computerization
solutions to doctors in France were robust.
Over the first nine months of 2018, division
revenues came to €2.8 million, down 3.9% on a reported basis.
Currency translation, acquisitions and divestments had no
impact.
The Corporate and others division represents
0.8% of consolidated revenues from continuing activities, compared
with 0.9% a year ago.
Q3 2018 division revenues came to €0.9 million,
down 6.4% on a reported basis and like for like. Currency
translation, acquisitions and divestments had no impact.
Highlights
- Independent director named to Cegedim SA's board
At the annual general meeting on August 31,
2018, shareholders appointed Ms. Béatrice Saunier to a six-year
term as an independent director. Her term will expire following the
AGM held to approve the financial statements for the year 2023.
To the best of the company's knowledge, except
for the aforementioned, there were no events or changes after the
accounts were closed that would materially alter the Group's
financial situation.
Significant post September 30th transactions
and events
- New financing structure for €200 million
On October 9, 2018, Cegedim set up a new
financing structure for a total amount of €200 million consisting
of a €135 million, 7-year Euro PP bond with a coupon of
3.50%, and a €65 million, 5-year syndicated revolving credit
facility with a one-year extension option. The interest rate on the
new revolving credit facility is 20 basis points lower than that of
the previous one.
To the best of the company's knowledge, except
for the aforementioned, there were no events or changes after the
September 30th that would materially alter the Group's financial
situation.
Outlook
- Cautiously optimistic for 2018
Building on the efforts that it executed with
success in 2017, Cegedim continues to pursue its strategy of
focusing on organic growth, fueled by a policy of sustained
innovation.
In response to regulatory changes enacted
September 15, 2018, in the field of telemedicine, and in order to
position itself as a major telemedicine player in France, the Group
has decided to make a meaningful investment in its appointment
scheduling and remote consultation platform, Docavenue, currently
in the start-up phase. As a result, the Group is revising its 2018
profitability outlook marginally downward. Cegedim now expects
stable full-year EBITDA compared with 2017 and reiterates its
expectation of modest like-for-like revenue growth.
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 the Group's consolidated 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.
Financial calendar
|
December 11 at 2:00 pm CET January 29, 2019,
after the market close March 27, 2019, after the market
close March 28, 2019 May 15, 2019, after the market
close June 19, 2019 July 25, 2019, after the
market close September 19, 2019, after the mkt. close
September 20, 2019 October 24, 2019, after the market
close |
9th Investor Summit 2018 revenues 2018 results SFAF analyst
meeting Q1 2019 revenues Annual shareholders' meeting Q2 2019
revenues H1 2019 results SFAF analyst meeting Q3 2019 revenues |
October 25, 2018, at 6:15 pm (Paris
time) |
The Group will hold a conference call in English 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 9M 2018 revenues presentation
is available on the website and on the Group's financial
communications app, Cegedim IR. |
Contact numbers: |
France: +33 1 72 72 74 03US:
+1 844 286 0643UK and others: +44
20 7194 3759 |
Pin code: 87847942# |
Additional information
Group 9M
and Q3 revenues have not been audited by the Statutory Auditors.
The Audit Committee met on October 24, 2018, and the Board of
Directors met on October 25, 2018, to review revenue figures for
the first nine months of 2018. 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 created systems and tools to identify
potentially significant contracts, as well as any changes in the
characteristics or volume 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 et e-services |
|
72,923 |
76,613 |
71,620 |
|
221,157 |
|
Healthcare
professionals |
|
38,029 |
38,133 |
36,291 |
|
112,453 |
|
Corporate and others |
|
989 |
947 |
900 |
|
2,835 |
|
Revenue from continuing
activities |
|
111,941 |
115,693 |
108,811 |
|
336,445 |
|
Revenue from activities
held for sale |
|
2,066 |
0 |
0 |
|
2,066 |
|
IFRS 5 restatement |
|
(36) |
0 |
0 |
|
(36) |
|
Group revenue |
|
113,970 |
115,693 |
108,811 |
|
338,475 |
|
In € thousands |
|
Q1 |
Q2 |
Q3 |
Q4 |
Total |
Health insurance, HR et 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 et e-services |
|
96.7% |
3.3% |
- |
- |
Healthcare
professionals |
|
61.4% |
30.8% |
7.8% |
- |
Corporate and others |
|
100.0% |
- |
- |
- |
Cegedim |
|
84.9% |
12.5% |
2.6% |
- |
Breakdown of revenue by currency and division
As
a % of consolidated revenues from continuing activities |
|
Euro |
GBP |
USD |
Others |
Health insurance, HR et e-services |
|
96.7 |
2.3% |
0.0% |
1.0% |
Healthcare
professionals |
|
65.6% |
25.1% |
7.6% |
1.7% |
Corporate and others |
|
100.0% |
- |
- |
- |
Cegedim |
|
86.3% |
9.9% |
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
A propos de 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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