Cegedim: 2020 revenue virtually stable like for like

Tuesday, 26. January 2021 17:45
 
 

PRESS RELEASE

Quarterly financial information as of December 31, 2020
IFRS - Regulated information - Not audited

Cegedim: 2020 revenue virtually stable like for like

  • Like-for-like revenues grew 2.3% in the fourth quarter of 2020
  • Targeting stable recurring operating income1 in 2020 vs. 2019
  • Targeting positive like-for-like revenue growth in 2021 vs. 2020

Boulogne-Billancourt, France, January 26, 2021, after the market close

Cegedim generated 2020 consolidated revenues of €496.9 million, down 1.4% as reported and 0.2% like for like compared with 2019 on the back of a 1.9% increase in the third quarter and a 2.3% increase in the fourth quarter.

“Amid challenging conditions, the Group proved itself resilient by posting like-for-like 2020 revenues that were virtually stable relative to 2019. After the first lockdown, revenues rebounded by 1.9%2 in the third quarter and then accelerated to 2.3% LFL growth in the fourth quarter. This was made possible by our unique positioning within the healthcare ecosystem, which combines a highly recurring business model and robust investment in innovation. The fact that the French government decided to supply Covid-19 vaccination centers with our Maiia appointment scheduling solution will tremendously increase our name recognition. 2021 is looking like it will be a tricky year; however, we are confident that we will be able to top our 2020 performance.” Laurent Labrune, Cegedim Group Deputy Managing Director.

Revenue

  12 months
in € millions 20202019LFL changeReported chg.
Software & Services 277.2286.9-0.7%-3.4%
Flow 79.480.6-3.6%-1.5%
Data & Marketing 87.885.8+2.4%+2.4%
BPO 48.947.1+3.9%+3.9%
      
Corporate and others 3.63.4+6.3%+6.3%
Cegedim 496.9503.7-0.2%-1.4%

Always looking for ways to improve its financial communication, the Group will now be reporting its results by business activity (divisions: Software & Services, Flow, Data & Marketing, and BPO) rather than by client segment (sectors: Health insurance, HR and e-services, and Healthcare professionals). To help you analyze these revenue figures, we have provided in the annex a breakdown by sector, as well as a table comparing the sector and division figures. Fourth-quarter figures are also presented by sector and by division in the annex.


Bridge from reported to LFL revenues

in € millions  
Consolidated Group revenue at 31/12/2019 503.7
Impact of acquisitions and disposals -5.2
Currency impacts -0.8
Revenue excl. impacts at 31/12/2019 497.7
   
Software & Services contribution -2.1
Flow contribution -2.9
Data & Marketing contribution +2.1
BPO contribution +1.9
Corporate and others contribution +0.2
Consolidated Group revenue at 31/12/2020 496.9

In 2020 the €5.2 million hit from scope effects, or 1.0pp, 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. Excluding an unfavorable currency translation impact of 0.2pp and an unfavorable scope effect of 1.0pp, revenues fell 0.2%.

Analysis of business trends by division

·Software & Services

The division’s 2020 revenues fell 0.7% like for like to €277.2 million.

This highly recurring business received a boost from the launch of a teleconsultation solution, Maiia Téléconsultation, which experienced strong growth due to the Covid-19 pandemic. As a reminder, the teleconsultation offering was supplied to clients free of charge in the first half of 2020. This fine performance was more than offset by the fact that several projects due to launch in 2020 were delayed until 2021 and because the complicated backdrop caused many investment decisions to be put off, particularly in the field of health insurance.

·Flow

The division’s 2020 revenues fell 3.6% like for like to €79.4 million.

This business was negatively affected by the Covid-19 pandemic, which caused many in France to make fewer doctor visits during lockdowns, thus diminishing health flows. Some of our clients decided to postpone projects from 2020 to 2021. However, the decline was partly offset by a very good performance in the invoice and process digitalization activity.

·Data & Marketing

The division’s 2020 revenues rose 2.4% like for like to €87.8 million.

Data activities experienced strong growth as a result of the pandemic. On the other hand, during the first lockdown of 2020, the pandemic had a detrimental impact on advertising business revenues from pharmacies in France.

·BPO

The division’s 2020 revenues rose 3.9% like for like to €48.9 million.

This business got a boost from adding a new contract in the fourth quarter of 2019, which more than offset the decrease in French residents’ use of healthcare during the Covid-19 lockdowns.


Highlights

To the best of the company’s knowledge, there were no events or changes during 2020 that would materially alter the Group’s revenues. For other highlights, please see the press releases announcing first-half and third-quarter results.

Significant transactions and events post December 31, 2020

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

Given the slight decline in like-for-like 2020 revenues, savings (notably from reduced business travel), and strict payroll cost management, the Group expects 2020 recurring operating income3 to be on a par with 2019.

For 2021, the Group expects like-for-like revenue growth of c.2%.

When it announces its 2020 results on March 18, 2021, after the market closes, the Group will share its targets for 2021 results by division and at the consolidated level.

The Group does not expect to make any significant acquisitions in 2021. And lastly, the group does not provide earnings estimates or forecasts.

WEBCAST ON JANUARY 26, 2021 AT 6:15 PM (PARIS TIME)
The webcast is available at: https://www.cegedim.fr/finance/documentation/communiques/Pages/FY-2020-revenues.aspx
 
The 2020 revenues presentation is available at:

 
 

Financial calendar

2021March 18 after the close

March 19

April 27 after the close

June 17

July 27 after the close

September 16 after the close

September 17

October 28 after the close
2020 results

SFAF meeting

Q1 2021 revenues

Shareholders’ meeting

Q2 2021 revenues

H1 2021 results

SFAF meeting

Q3 2021 revenues


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. It was sent to Cegedim’s authorized distributor on January 26, 2021, no earlier than 5:45 pm Paris time.
The figures cited in this press release include guidance on Cegedim's future financial performance targets. 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”, section 7.2, “Risk factors and insurance”, and Chapter 3, “Overview of the financial year”, section 3.6, “Outlook”, of the 2019 Universal Registration Document filled with the AMF on March 31, 2020 under number D.20-0218.
Fourth-quarter and full-year 2020 revenue figures have not been audited by the Statutory Auditors.

 
 

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 5,300 people in more than 10 countries and generated revenue close to €500 million in 2020.
Cegedim SA is listed in Paris (EURONEXT: CGM).
To learn more, please visit: www.cegedim.fr
And follow Cegedim on Twitter: @CegedimGroup, LinkedIn and Facebook.

Aude BALLEYDIER
Cegedim
Media Relations
and Communications Manager
Tél. : +33 (0)1 49 09 68 81
aude.balleydier@cegedim.fr

Jan Eryk UMIASTOWSKI
Cegedim
Chief Investment and
Investor Relations Officer
Tél. : +33 (0)1 49 09 33 36
janeryk.umiastowski@cegedim.com

Céline PARDO
suPR
Media Relations
Tél. : +33 (0)6 52 08 13 66
        +33 (0)6 80 80 83 97
cegedim@becoming-group.com
 

 



Annexes

Division profiles

Software & Services division: comprises all of the Group’s software offerings in all formats (licenses, SaaS, internet services) as well as hosting (HDS certified for health data) and IT facilities management. Cegedim markets these offerings to health and personal protection insurers (France and the UK); allied health professionals—physical therapists, nurses, speech therapists, podiatrists, midwives, etc. (France); HR departments (France); independent pharmacies as well as chains and consortiums of pharmacies (France, Romania, and the UK); and doctors and medical centers (France, the UK, Belgium, Spain, and Italy).

Flow division: comprises third-party payment management (France), invoice and process digitization, probative value storage, and EDI (France, the UK, and Germany). This business has service centers in France, Romania, and Morocco.

Data & Marketing division: comprises

  • data for health authorities, healthcare professionals, researchers, the healthcare industry and its partners in France, Italy, Germany, Spain, Romania, and the UK;
  • print and digital advertising in pharmacies and health & wellness shops in France;
  • digital marketing to doctors;
  • healthcare product distribution.

BPO division: comprises business process outsourcing activities in France for supplemental health insurers (managing reimbursement, among other things); personal protection insurers, and HR departments. This division has service centers in France and Romania.

Revenue trends by sector

  12 months
in € millions 20202019LFL changeReported chg.
Health insurance, HR and e-services 341.8340.5-0.2%+0.4%
Healthcare professionals 151.5159.8-0.1%-5.2%
Corporate and others 3.63.4+6.3%+6.3%
Cegedim 496.9503.7-0.2%-1.4%

Sector / division comparison

  2020
in € millions Health insurance,HR and e-servicesHealthcare professionalsTotal
Software & services 125.7151.5277.2
Flow 79.4079.4
Data & Marketing 87.8087.8
BPO 48.9048.9
Corporate and others 003.6
Cegedim 341.8151.5496.9

Q4 2020 revenues by sector and by division

  Q4
in € millions 20202019LFL changeReported chg.
Health insurance, HR and e-services 100.698.4+2.3%+2.2%
Healthcare professionals 40.240.2+1.9%+0.0%
Corporate and others 1.00.9+10.1%+10.1%
Cegedim 141,8139,5+2.3%+1.6%


  Q4
in € millions 20202019LFL changeReported chg.
Software & services 75.575.4+1.2%+0.1%
Flow 22.022.5-1.9%-2.0%
Data & Marketing 30.326.8+13.3%+13.3%
BPO 13.014.0-7.0%-7.0%
Corporate and others 1.00.9+10.1%+10.1%
Cegedim 141.8139.5+2.3%+1.6%

Breakdown of revenue by quarter and division

·Year 2020

in € thousands Q1Q2Q3Q4Total
Health insurance, HR and e-services 82.777.780.9100.6341.8 
Healthcare professionals 38.036.237.140.2151.5 
Corporate and others 0.90.91.01.03.6 
Consolidated Group revenue 121.5114.7118.9141.8496.9 


in € thousands Q1Q2Q3Q4Total
Software & services 69.164.468.075.5277.2 
Flow 20.418.019.022.079.4 
Data & Marketing 18.919.619.030.387.8 
BPO 12.311.612.013.048.9 
Corporate and others 0.90.91.01.03.6 
Consolidated Group revenue 121.5114.7118.9141.8496.9 

·Year 2019

in € thousands Q1Q2Q3Q4Total
Health insurance, HR and e-services 79.283.379.698.4340.5 
Healthcare professionals 39.142.538.040.2159.8 
Corporate and others 0.90.80.80.93.4 
Consolidated Group revenue 119.2126.6118.4139.5503.7 


in € thousands Q1Q2Q3Q4Total
Software & services 69.272.869.575.4286.9 
Flow 19.419.818.922.580.6 
Data & Marketing 18.922.217.826.885.7 
BPO 10.810.811.414.047.1 
Corporate and others 0.90.80.80.93.4 
Consolidated Group revenue 119.2126.6118.4139.5503.7 


Breakdown of revenue by geographic zone and division

·At December 31, 2020

as a % of consolidated revenues FranceEMEA ex. FranceAmericas
Software & services 78.5%21.4%0.2%
Flow 93.1%6.9%0.0%
Data & Marketing 97.1%2.9%0.0%
BPO 100.0%0.0%0.0%
Logicle 100.0%0.0%0.0%
Cegedim 86.4%13.5%0.1%

Breakdown of revenue by currency and division

·At December 31, 2020

as a % of consolidated revenues EuroGBPUSDOthers
Software & services 81.4%16.7%0.0%1.9%
Flow 96.0%4.0%0.0%0.0%
Data & Marketing 97.1%0.0%0.0%2.9%
BPO 100.0%0.0%0.0%0.0%
Corporate and others 100.0%0.0%0.0%0.0%
Cegedim 88.5%10.0%0.0%1.6%






1 Alternative performance indicators. See page 113 to 114 of the 2019 Universal Registration Document.



2 Like-for-like.



3 Alternative performance indicators. See page 113 to 114 of the 2019 Universal Registration Document.



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