Cegedim: Revenue grew by 7.7% in FY 2019
PRESS RELEASE -------------
Quarterly financial information as of December 31, 2019 IFRS - Regulated information - Not audited
Cegedim: Revenue grew by 7.7% in FY 2019
-- Like-for-like revenues grew 7.0% over FY 2019 -- Like-for-like revenues grew 6.5% over Q4 2019
Boulogne-Billancourt, France, January 27, 2020, after the market close
Cegedim, an innovative technology and services company, generated consolidated full year revenues of €503.7 million in 2019, an increase of 7.7% as reported and 7.0% like-for-like compared with the same period in 2018. All the operating divisions made positive year-on-year contributions to the Group’s like-for-like growth
Group revenue trends, consolidated and by division
·Full year 2019
Full year in € million 2019 2018 Chg. LFL Chg. Reported ----------------------------------- ----- ----- -------- ------------- Health insurance, HR and e-services 340.5 307.7 +8.6% +10.7% Healthcare professionals 159.8 156.2 +4.2% +2.3% Corporate and others 3.4 3.8 (10.2)% (10.2)% Cegedim 503.7 467.7 +7.0% +7.7% ----------------------------------- ----- ----- -------- -------------
Excluding a favorable currency translation impact of 0.1% and a favorable scope effect of 0.6%, revenues rose 7.0%.
The €2.6 million boost from scope effects, or 0.6%, was chiefly due to the acquisition of Ximantix in Germany on January 21, 2019, BSV in France on January 31, 2019, Cosytec in France in July 2019, and that of NetEDI in the United Kingdom, partly offset by the sale of virtually all the business activities of Pulse Systems Inc in the United States in August 2019. Pulse Systems contributed €11.3million to the Group’s consolidated revenue in 2018 and €7.4 million in 2019.
BPO activities for the insurance and human resources business generated revenues totaling €45.5 million over the full year 2019, a 26.8% improvement compared with 2018.
·Fourth Quarter 2019
Fourth quarter in € million 2019 2018 Chg. LFL Chg. Reported ----------------------------------- ----- ----- -------- ------------- Health insurance, HR and e-services 98.4 86.5 +11.3% +13.8% Healthcare professionals 40.2 43.7 (2.5)% (8.1)% Corporate and others 0.9 1.0 (11.7)% (11.7)% Cegedim 139.5 131.2 +6.5% +6.3% ----------------------------------- ----- ----- -------- -------------
Cegedim’s Q4-2019 consolidated revenues came to €139.5 million, up 6.3% as reported. Excluding a favorable currency translation impact of 0.2% and an unfavorable scope effect of 0.4%, revenues rose 6.5%.
The unfavorable scope impact of €0.5 million, or 0.4%, was mainly attributable to the acquisitions of Ximantix in Germany on January 21, 2019, BSV in France on January 31, 2019, Cosytec in France in July 2019, and that of NetEDI in United Kindown, offset by the sale of virtually all the business activities of Pulse Systems Inc in the United States in August 2019.
Analysis of business trends by division
·Health insurance, HR and e-services
The division’s reported revenues rose 10.7% in the full year 2019 to €340.5 million. Currencies had virtually no impact. Acquisitions had a favorable impact of 2.0%. Like-for-like revenues rose 8.6% over the period. Over the full year 2019, acquisitions’ positive contribution of 2.0%, or €6.2 million, came mainly from Ximantix, BSV, NetEDI and Cosytec. This division represented 67.6% of consolidated FY 2019 revenues compared with 65.8% a year earlier.
The businesses that made the biggest contributions to this growth in 2019 were—in the health insurance sector—BPO and third-party payment flow processing activities, Cegedim e-business (document and process digitization), Cegedim SRH (HR management solutions), Cegedim Health Data (data and analytics for the healthcare market), and Cegedim-Media (digital and conventional communications solutions in pharmacies).
·Healthcare professionals
The division’s reported revenues rose 2.3% in the full year 2019 to €159.8 million. Currency translation had a positive impact of 0.4%. Acquisitions and disposals had a negative impact of 2.3%. Like-for-like revenues rose 4.2% over the period. Over the full year 2019, the 2.3% negative impact from acquisitions and disposals, or €3.6 million, was mainly due to the sale of virtually all the business activities of Pulse Systems Inc in the United States in August 2019. This division represented 31.7% of consolidated FY 2019 revenues compared with 33.4% a year earlier.
The businesses that made the biggest positive contributions over the year were computerization solutions for doctors and allied health professionals in France, for pharmacists in the United Kingdom and Romania, for appointment scheduling and remote consultations (Docavenue), and for doctors in Romania and the UK.
The decrease in Q4-19 revenues was the result of a challenging comparison caused by one-off sales to the NHS recorded in the fourth quarter in 2018 and in the second quarter in 2019.
·Corporate and others
The division’s revenues fell 10.2% as reported and like for like in the full year 2019, to €3.4 million.
Highlights
To the best of the company’s knowledge, apart from the items listed below, there were no events or changes during the fourth quarter of 2019 that would materially alter the Group’s financial situation.
·Tessi lawsuitOn September 17, 2019, the Paris Court of Appeals overturned the Commercial Court’s ruling and reduced Cegedim’s penalty for financial damages resulting from the breach of a contract of sale to €2,857,693 from €4,586,000. Tessi repaid Cegedim the sum of €1,694,678 during the fourth quarter of 2019.
Significant transactions and events post December 31, 2019
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
For the full year 2019, the Group had expected like-for like growth above 5%. Cegedim recorded full year 2019 like-for-like revenue growth of 7.0%.
The Group is clarifying its 2019 objective for EBITDA* growth. Apart from the positive impact of the first application of IFRS 16, EBITDA growth should be in line with the growth recorded in revenue.
The Group will communicate its 2020 outlook when it releases its 2019 results on March 19, 2020, after the market close.
The Group does not expect to make any significant acquisitions in 2020.
Lastly, the Group does not provide earnings forecasts.
·Potential impact of Brexit
In 2018, the UK accounted for 10.0% of consolidated Group revenues and 9.9% of consolidated Group EBITDA*. In 2019, the UK accounted for 9.8% of consolidated Group revenues.
Cegedim deals in local currency in the UK. Brexit is unlikely to have a material impact on Group EBITDA*.
With regard to healthcare policy, the Group has not identified any major European programs at work in the UK, and no contracts with entities in the UK contain clauses dealing with Brexit.
Additional information
Fourth quarter 2019 and full year 2019 revenue figures have not been audited by the Statutory Auditors.
The fourth quarter 2019 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.
(*) Alternative performance indicatorEBITDA 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.
2020 Financial calendar
WEBCAST ON OCTOBER 24, 2019, 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: 34380666# The webcast is available at:www.cegedim.fr/webcast ----------------------------------------------------------------------------------------
March 19 after the market close 2019 results March 20at 10:00 am CET Analyst meeting (SFAF) in Cegedim’s auditorium April 27 after the market close First quarter 2020 revenue June 17 at 9:30 am CET Cegedim shareholders’ meeting June 25time to be defined later Cegedim’s investor day July 28 after the market close Second quarter 2020 revenue September 17 after the market close First half 2020 results September 18 at 10:00 am CET Analyst meeting (SFAF) in SFAF’s offices October 28 after the market close Third quarter 2020 revenues
Annexes
Breakdown of revenue by quarter and division
·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 Revenue from continuing activities 119,222 126,574 118,435 139,514 503,745 Revenue from activities held for sale 0 0 0 0 0 IFRS 5 restatement 0 0 0 0 0 Group revenue 119,222 125,574 118,435 139,514 503,745 ------------------------------------- ------- ------- ------- ------- -------
·Year 2018
in € thousands Q1 Q2 Q3 Q4 Total ------- -- ------------ ------- -------- Health insurance, HR and e-services 72,923 76,613 71,620 86,526 307,684 Healthcare professionals 38,029 38,133 36,291 43,731 156,184 Corporate and others 989 947 900 985 3,820 Revenue from continuing activities 111,941 115,693 108,811 131,242 467,688 Revenue from activities held for sale 2,066 0 0 0 2,066 IFRS 5 restatement (36) 0 0 0 (36) Group revenue 113,970 115,693 108,811 131,242 469,717 ------------------------------------- ------- ------- ------- ------- -------
Breakdown of revenue by geographic zone and division
·As of December 31, 2019
as a % of consolidated revenues France EMEAexcl. France Americas APAC ---------------- -------- ---- Health insurance, HR and e-services 95.8% 4.2% 0.0% - Healthcare professionals 62.1% 32.9% 4.9% - Corporate and others 99.4% 0.6% 0.0% - Cegedim 85.2% 13.3% 1.6% - ----------------------------------- ------ ---------------- -------- ----
Breakdown of revenue by currency and division
·As of December 31, 2019
as a % of consolidated revenues Euro GBP USD Others ----- ---- ------ Health insurance, HR and e-services 96.5% 2.6% 0.0% 0.9% Healthcare professionals 67.2% 25.4% 4.7% 2.8% Corporate and others 100.0% 0.0% 2.8% 0.0% Cegedim 87.2% 9.8% 1.5% 1.5% ----------------------------------- ------ ----- ---- ------
BPO (Business Process Outsourcing): BPO is the contracting of non-core business activities and functions to a third-party provider. Cegedim provides External growth: External growth covers acquisitions BPO services for human resources, Revenue Cycle during the current fiscal year, as well as those which Management in the US and management services for have had a partial impact on the previous fiscal year, insurance companies, provident institutions and mutual net of sales of entities and/or assets. insurers. Free cash flow:Free cash flow is cash generated, net Business model transformation: Cegedim decided in fall of the cash part of the following items: (i) changes 2015 to switch all of its offerings over to SaaS in working capital requirements, (ii) transactions on format, to develop a complete BPO offering, and to equity (changes in capital, dividends paid and materially increase its R&D efforts. This is reflected received), (iii) capital expenditure net of transfers, in the Group’s revamped business model. The change has (iv) net financial interest paid and (v) taxes paid. altered the Group’s revenue recognition and negatively affected short-term profitability. Internal growth: Internal growth covers growth resulting from the development of an existing Corporate and others: This division encompasses the contract, particularly due to an increase in rates activities the Group performs as the parent company of and/or the volumes distributed or processed, new a listed entity, as well as the support it provides to contracts, acquisitions of assets allocated to a the three operating divisions. contract or a specific project. EBIT margin: EBIT margin is defined as the ratio of Life-for-like data (L-f-l): At constant scope and EBIT/revenue. exchange rates. EBIT margin before special items: EBIT margin before Net cash: Net cash is defined as cash and cash special items is defined as the ratio of EBIT before equivalent minus overdraft. special items/revenue. Operating expenses: Operating expenses is defined as EPS: Earnings Per Share is a specific financial purchases used, external expenses and payroll costs. 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.
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 January 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 2, points 2.5, “Risk factors and insurance”, and 2.7, “Outlook”, of the 2018 Registration Document filled with the AMF on March 29, 2019.
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.com And follow Cegedim on Twitter: @CegedimGroup, LinkedIn and Facebook.
Aude Balleydier Jan Eryk Umiastowski Céline Pardo & Cegedim Cegedim Inrène Semerard Media Relations Chief Investment Officer suPR and Communications Manager and head of Investor Relations Media Relations Tel.: +33 (0)1 49 09 68 81 Tel.: +33 (0)1 49 09 33 36 Tel: +33 (0)6 52 08 13 66 [email protected] [email protected] +33 (0)6 80 80 83 97 [email protected]
Attachment
-- Cegedim_Revenue_4Q2019_ENG