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 |
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
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
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
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
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.
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 03
US: +1 844 286 0643
UK 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.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_3Q2018_ENG
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Cegedim SA via Globenewswire
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