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Cegedim: Growth continued in the third quarter of 2022

Cegedim SA
Cegedim SA

 



PRESS RELEASE

Quarterly financial information as of September 30, 2022
IFRS - Regulated information - Not audited

Cegedim: Growth continued in the third quarter of 2022

  • Q3 2022 revenues grew 6.7%

  • All operating divisions contributed to growth

  • Growth for the first nine months came to 6.6%

  • Cegedim Santé: starting to rev its engines

Boulogne-Billancourt, France, October 27, 2022, after the market close

Revenue

 

Third quarter

Change Q3 2022 / 2021

First 9 months

Change 9M 2022 / 2021

in millions of euros

2022

2021

Reported

Like for like

2022

2021

Reported

Like for like(1)(2)

Software & services

75.2

71.3

+5.5%

+3.7%

220.8

211.5

+4.4%

+3.3%

Flow

21.5

19.8

+8.8%

+8.8%

66.7

61.5

+8.5%

+8.4%

Data & Marketing

22.8

21.8

+4.5%

+3.7%

72.8

66.5

+9.4%

+9.1%

BPO

13.0

11.4

+13.6%

+13.6%

38.4

34.4

+11.8%

+11.8%

Corporate and others

0.8

0.5

+41.1%

+41.1%

2.1

2.0

+2.5%

+2.5%

Cegedim

133.3

124.8

+6.7%

+5.6%

400.8

376.0

+6.6%

+5.9%

(1)   At constant scope and exchange rates.
(2)   The positive currency impact of 0.2% was mainly due to the pound sterling. The positive scope effect of 0.5% was attributable to the first-time consolidation of Kobus Tech, Mesdocteurs, Laponi and Clinityx.

Consolidated third quarter revenues rose 6.7% as reported and 5.6% like for like(1) compared with the same period in 2021.

Revenues to end-September rose 6.6% as reported and 5.9% like for like(1) compared with the same period in 2021, confirming the healthy trajectory we saw in the second quarter.

Analysis of business trends by division

  • Software & Services

Software and Services

Third quarter

Change Q3 2022 / 2021

First 9 months

Change 9M 2022 / 2021

in millions of euros

2022

2021

Reported

Like for like

2022

2021

Reported

Like for like

Cegedim Santé

18.5

15.4

+20.0%

+12.6%

50.3

45.9

+9.5%

+5.9%

Insurance, HR, Pharmacies and other services

44.7

42.3

+5.7%

+5.5%

134.5

126.3

+6.5%

+6.4%

International businesses

12.0

13.6

(11.6)%

(11.6)%

36.0

39.3

(8.4)%

(9.8)%

Software & Services

75.2

71.3

5.5%

3.7%

220.8

211.5

4.4%

3.3%

Cegedim Santé’s capital increase allowed it to implement a development plan that has boosted its like-for-like growth rate into the double digits over the third quarter.

The division’s other businesses in France posted growth rates in line with their business plans: Software & Services for clients in the insurance, HR, and pharmacy sectors all made positive contributions through end-September.

On the other hand, international businesses are still awaiting a turnaround. Computerization services for healthcare professionals in the UK are a good example, as tender offers by UK health authorities aren’t scheduled to take place until late 2023.

  • Flow

Flow

Third quarter

Change Q3 2022 / 2021

First 9 months

Change 9M 2022 / 2021

in millions of euros

2022

2021

Reported

Like for like

2022

2021

Reported

Like for like

e-business

12.9

11.3

+13.5%

+13.6%

40.1

35.3

+13.5%

+13.4%

Third-party payment

8.6

8.4

+2.5%

+2.5%

26.6

26.2

+1.7%

+1.7%

Flow

21.5

19.8

8.8%

8.8%

66.7

61.5

8.5%

8.4%

Process digitalization and electronic data flows continue to do well both in France and abroad, with growth in the double digits. The clear recovery seen in Germany and the UK in the first half continued in the third quarter, boosting the weight of international business to 13% of the total.

Third-party payment flows in France decreased during the pandemic but have ramped back up as healthcare spending has risen in France.

  • Data & Marketing

Data & Marketing

Third quarter

Change Q3 2022 / 2021

First 9 months

Change 9M 2022 / 2021

in millions of euros

2022

2021

Reported

Like for like

2022

2021

Reported

Like for like

Data

14.3

13.0

+10.1%

+8.7%

40.4

37.2

+8.5%

+8.1%

Marketing

8.5

8.8

(3.7)%

(3.7)%

32.4

29.3

+10.5%

+10.5%

Data & Marketing

22.8

21.8

4.5%

3.7%

72.8

66.5

9.4%

9.1%

The data business continued its strong showing from the first half. Clinityx, which the Group acquired in July, is now consolidated in this unit.

The majority of the Group’s marketing activities are non-recurring, and the business did not manage to repeat its second-quarter performance. It was disadvantaged by the comparison with the post-Covid recovery in Q3 2021. Even so, cumulative growth to end-September was still above 10%.

  • BPO

BPO

Third quarter

Change Q3 2022 / 2021

First 9 months

Change 9M 2022 / 2021

 in millions of euros

2022

2021

Reported

Like for like

2022

2021

Reported

Like for like

Insurance BPO

8.1

7.1

+13.8%

+13.8%

23.7

21.8

+9.0%

+9.0%

HR BPO

4.9

4.3

+13.3%

+13.3%

14.7

12.6

+16.5%

+16.5%

BPO

13.0

11.4

13.6%

13.6%

38.4

34.4

11.8%

11.8%

BPO services continue to expand—both for clients’ HR departments and for insurance companies and mutuals—and third-quarter growth was in the double digits.

Highlights

Apart from the items cited below, to the best of the company’s knowledge, there were no events or changes during Q3 2022 that would materially alter the Group’s financial situation.

  • War in Ukraine

The Group does not do business in Russia or Ukraine and has no assets exposed to those countries.

  • Acquisition of Sedia

On July 19, 2022, Cegedim e-business rounded out its Hospitalis offering by acquiring Sedia.

Sedia has specialized in software that tracks medical instrumentation usage since 1985. Thanks to this acquisition, Hospitalis now offers a medical device and implantable medical device (MD/IMD) tracking service. The service is responsible for 900,000 scans annually and has tracked more than 8 million IMDs. The newest component in the Hospitalis range, Sedia offers health, financial, and logistical tracking of MD/IMDs that are on consignment or have been lent or purchased outright.

Sedia is profitable. It will begin contributing to the Group’s consolidation scope on August 1, 2022.

  • Acquisition of Clinityx

On July 28, 2022, Cegedim strengthened its position in the real-world data sector by acquiring Clinityx.

Clinityx, a health start-up founded in 2018, aims to make real-word data research easier by providing a robust scientific, technical, and regulatory environment. Clinityx partners with academic establishments to build data warehouses paired with the SNDS, the French administrative healthcare database, enriching the health data and ensuring their good governance and security. The company also provides consulting services and manages all aspects of real-world studies from protocol design to final report, using data from its own warehouses, the SNDS, and other databases.

Clinityx is profitable. It began contributing to the Group’s consolidation scope on August 1, 2022.

Significant transactions and events post September 30, 2022

  • Allianz contract

Allianz France and Cegedim Insurance Solutions—a major provider of software solutions and services for the personal protection insurance sector—have signed a 15-year strategic partnership under which Allianz will outsource the management of insurance policy portfolios in the Group Health, Individual Health, and Group Personal Protection segments in France to Cegedim Insurance Solutions. The deal covers 1.3 million beneficiaries. As part of the partnership, the Allianz France staff that currently perform these duties will be transferred to Cegedim.

Outlook

Based on 9M 2022 revenues up 5.9% like for like(1), and despite the public health, economic, geopolitical, and monetary uncertainty facing the world, the Group is confident it can grow revenues by 5% like for like(1) in 2022.

There is a delay of several months between wage increases and the annual increase in salaries indexed to, for example, the Syntec index in France. The negative impact of that delay, combined with the Cegedim Santé development plan launch, will be a headwind for recurring operating income.

WEBCAST ON OCTOBER 27, 2022, AT 6:15 PM PARIS TIME

The webcast is available at: www.cegedim.fr/webcast

 

The 9M 2022 revenues presentation is available:

 

 

2023 Financial calendar

2023

January 26 after the close

FY 2022 revenues

Financial Calendar available on the website: https://www.cegedim.com/finance/agenda/Pages/default.aspx

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 27, 2022, 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 2021 Universal Registration Document filled with the AMF on April 1st, 2022, under number D.22-0232.



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 5,600 people in more than 10 countries and generated revenue of €525 million in 2021.
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
Tel.: +33 (0)1 49 09 68 81
aude.balleydier@cegedim.fr


Jérôme Moreau
Cegedim
Group Controller Director
in charge of the Financial Communication
Tel.:        +33 (0)1 46 10 72 62
jerome.moreau@cegedim.com


Céline Pardo
.Becoming
Media Relations

 

Tel.:        +33 (0)6 52 08 13 66
cegedim@becoming-group.com



 


Annexes

Breakdown of revenue by quarter and division

  • Year 2022

in € million

 

Q1

Q2

Q3

Q4

Total

Software & services

 

71.2

74.4

75.2

 

220.8

 

Flow

 

22.6

22.6

21.5

 

66.7

 

Data & marketing

 

22.5

27.6

22.8

 

72.8

 

BPO

 

12.3

13.1

13.0

 

38.4

 

Corporate and others

 

0.7

0.7

0.8

 

2.1

 

Group revenue

 

129.2

138.3

133.3

 

400.8

 

  • Year 2021

in € million

 

Q1

Q2

Q3

Q4

Total

Software & services

 

68.8

71.4

71.3

80.4

292.0

 

Flow

 

21.0

20.7

19.8

22.7

84.2

 

Data & marketing

 

19.9

24.8

21.8

31.9

98.4

 

BPO

 

11.7

11.2

11.4

13.0

47.3

 

Corporate and others

 

1.0

0.5

0.5

0.7

2.7

 

Group revenue

 

122.5

128.7

124.8

148.7

524.7

 

Breakdown of revenue by geographic zone, currency and division at September 30, 2022

as a % of consolidated revenues

 

Geographic zone

 

Currency

 

France

EMEA
ex. France

Americas

 

Euro

GBP

Others

Software & services

 

+83.7%

+16.2%

+0.1%

 

+86.6%

+11.7%

+1.7%

Flow

 

+92.5%

+7.5%

+0.0%

 

+95.5%

+4.5%

+0.0%

Data & marketing

 

+97.6%

+2.4%

+0.0%

 

+97.6%

+0.0%

+2.4%

BPO

 

+100.0%

+0.0%

+0.0%

 

+100.0%

+0.0%

+0.0%

Corporate and others

 

+99.6%

+0.4%

+0.0%

 

+100.0%

+0.0%

+0.0%

Cegedim

 

89.3%

10.6%

0.1%

 

91.4%

7.2%

1.4%

Attachment