• Cegedim: Revenues grew 10.9% in 2023

    Source: Nasdaq GlobeNewswire / 25 Jan 2024 10:45:00   America/Chicago

     
     

    PRESS RELEASE

    Quarterly financial information as of December 31, 2023
    IFRS - Regulated information - Not audited

    Cegedim: Revenues grew 10.9% in 2023

    • Fourth quarter revenues up 7.9% like for like
    • 2023 revenue of €616 million, up 10.8% like for like
    • All operating divisions contributed to growth

    Boulogne-Billancourt, France, January 25, 2024, after the market close

    Revenue

     Fourth quarterChange Q4 2023 / 2022Full yearChange 2023 / 2022
    in millions of euros20232022ReportedLike for like(1)(2)20232022ReportedLike for like(1)(2)
    Software & services84.481.14.0%4.0%326.6302.08.2%8.0%
    Flow24.823.93.8%3.8%95.990.65.9%6.0%
    Data & marketing35.834.15.2%5.2%114.9106.97.5%7.0%
    BPO19.614.634.8%34.8%71.553.034.9%34.9%
    Cloud & support2.00.7187%187%7.12.8154.0%154.0%
    Cegedim166.6154.47.9%7.9%616.0555.210.9%10.8%

    (1)   At constant scope and exchange rates.
    (2)   The negative currency impact of 0.1% was mainly due to the pound sterling. The positive scope effect of 0.3% was attributable to the first-time consolidation in Cegedim’s accounts of new acquisitions Mesdocteurs, Laponi, and Clinityx.

    Cegedim’s consolidated fourth quarter 2023 revenues rose to €166.6 million, up 7.9% as reported and like for like compared with the same period in 2022. Despite some slowing in the fourth quarter relative to the rest of the year, all operating divisions contributed to the Group’s growth over the full year 2023.

    In 2023, revenues rose 10.9% as reported and 10.8% like for like compared with 2022, nearly in line with the Group’s expectation of 11%.

    Analysis of business trends by division

    • Software & services
    Software & ServicesFourth quarterChange Q4 2023 / 2022Full yearChange 2023 / 2022
    in millions of euros20232022ReportedLFL20232022ReportedLFL
    Cegedim Santé18.119.2-5.7%-5.7%76.669.610.1%8.6%
    Insurance, HR, Pharmacies, and other services53.649.09.3%9.3%197.6183.57.7%7.6%
    International businesses12.712.9-1.9%-1.9%52.548.97.2%8.7%
    Software & services84.481.14.0%4.0%326.6302.08.2%8.0%

    Cegedim Santé posted a 5.7% drop in fourth-quarter revenue. Because the company received a payment related to Ségur de la Santé public health investments in Q4 2022, the drop was mainly due to a comparison effect. Excluding the Ségur effect, Cegedim Santé posted full-year growth of 5.7%.

    Q4 revenues from the division’s other businesses in France rose more than 9%, bringing full-year growth to 7.7%. The biggest contributors over 2023 were HR activities, software for pharmacists, and outsourcing services. Conversely, non-recurring project-based business with health insurers was down compared with 2022.

    International businesses posted 7.2% growth over the full year compared with 2022. Sales to doctors in Spain were particularly robust in 2023, and businesses in other countries in Europe are also well oriented across the board. Sales of software to pharmacists in the UK is noteworthy back on growth. However, fourth quarter revenues fell 1.9%, chiefly owing to software for doctors in the UK. The market for doctor’s software is under pressure, and Cegedim plans to use the period for negotiations with the UK’s four health authorities—which opens in early 2024—to target the niches where growth is possible in order to reach operating breakeven in the medium term.

    • Flow
    FLOWFourth quarterChange Q4 2023 / 2022Full yearChange 2023 / 2022
    in millions of euros20232022ReportedLFL20232022ReportedLFL
    e-business14.613.85.9%5.9%57.953.97.4%7.5%
    Third-party payer10.210.10.9%0.9%38.036.73.7%3.7%
    Flow24.823.93.8%3.8%95.990.65.9%6.0%

    Process digitalization and electronic data flows continue to do well, up 5.9% year on year over the fourth quarter, but the pace of growth slowed relative to prior quarters. Both French and international activities contributed to the growth.

    Third-party payer revenues increased 3.7% in 2023, in line with the trend in health spending in France.

    • Data & marketing
    Data & MarketingFourth quarterChange Q4 2023 / 2022Full yearChange 2023 / 2022
    in millions of euros20232022ReportedLFL20232022ReportedLFL
    Data21.021.00.3%0.4%64.561.45.1%4.3%
    Marketing14.813.113.0%13.0%50.445.510.7%10.7%
    Data & marketing35.834.15.2%5.2%114.9106.97.5%7.0%

    Revenues in the fourth quarter were stable compared with the same period in 2022. Full-year revenues were up 4.3% like for like and 5.1% as reported, due to the Clinityx acquisition in the second half of 2022.

    Marketing activities—whose business model is largely non-recurring—saw strong 13% growth in the fourth quarter, driven by advertising in pharmacies.

    • BPO
    BPOFourth quarterChange Q4 2023 / 2022Full yearChange 2023 / 2022
     in millions of euros20232022ReportedLFL20232022ReportedLFL
    Insurance BPO 14.08.466.2%66.2%49.932.155.3%55.3%
    HR BPO5.66.1-8.3%-8.3%21.520.83.4%3.4%
    BPO19.614.634.8%34.8%71.553.034.9%34.9%

    The Insurance BPO business posted stellar growth over the full year, chiefly owing to the start of its contract with Allianz on April 1, 2023.

    The HR BPO business had a challenging quarter because of a demanding comparison as a result of several projects launched in Q4 2022, but still managed to grow 3.4% over the full year.

    Highlights

    Apart from the items cited below, to the best of the company’s knowledge, there were no events or changes during Q4 2023 that would materially alter the Group’s financial situation.

    • Acquisition of a majority stake in Phealing

    On November 30, 2023, Cegedim acquired a majority stake in Phealing, a start-up specializing in secure prescription drug delivery. Phealing’s offer, based around its artificial intelligence engine, caters to pharmacies: double checking prescription medication, which means verifying at the time the prescription is filled that the medicine matches the patient’s prescription, physical profile, and illness.

    Significant transactions and events post December 31, 2023

    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

    The Group will announce its full-year results March 27 after the close. Based on the currently available information, the Group expects an increase in recurring operating income.        
    For 2024, the Group expects like-for-like revenue growth of 5 to 8%.

    The Group does not provide earnings estimates or forecasts.

    WEBCAST ON JANUARY 25, 2024, AT 6:15 PM (PARIS TIME)
    The webcast is available at: www.cegedim.fr/webcast
     
    The 2023 revenue presentation is available:
     

    2024 financial calendar

    2024March 27 after the close

    March 28 at 10:00 am

    April 25 after the close

    June 14 at 9:30

    July 25 after the close

    September 26 after the close    		2023 results

    SFAF meeting

    Q1 2024 revenues

    Shareholders’ meeting

    H1 2024 revenues

    H1 2024 results

    Financial calendar: https://www.cegedim.fr/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. It was sent to Cegedim’s authorized distributor on January 25, 2024, 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 2022 Universal Registration Document filled with the AMF on April 12, 2023, under number D.23-0266.
     

    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 6,500 people in more than 10 countries and generated revenue of €616 million in 2023.
    Cegedim SA is listed in Paris (EURONEXT: CGM).
    To learn more please visit: www.cegedim.fr
    And follow Cegedim on X: @CegedimGroup, LinkedIn, and Facebook.

    Aude Balleydier
    Cegedim
    Media Relations
    and Communications Manager
    Tel.: +33 (0)1 49 09 68 81
    aude.balleydier@cegedim.fr
    Damien Buffet
    Cegedim
    Head of Financial Communication

     

    Tel.: +33 (0)7 64 63 55 73
    damien.buffet@cegedim.com
    Céline Pardo
    suPR
    Media Relations

     

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

     


    Annexes

    Breakdown of revenue by quarter and division

    • Year 2023
    in millions of euros Q1Q2Q3Q4Total
    Software & services 80.481.180.784.4326.6 
    Flow 24.823.422.924.895.9 
    Data & marketing 24.630.324.135.8114.9 
    BPO 14.418.419.019.671.5 
    Cloud & support 1.61.91.62.02.8 
    Group revenue 145.9155.1148.3166.6616.0 
    • Year 2022
    in millions of euros Q1Q2Q3Q4Total
    Software & services 71.274.475.281.1302.0 
    Flow 22.622.621.523.990.6 
    Data & marketing 22.527.622.834.1106.9 
    BPO 12.313.113.014.653.0 
    Cloud & support 0.70.70.80.72.8 
    Group revenue 129.2138.3133.3154.4555.2 

    Revenue breakdown by geographic zone, currency, and division at December 31, 2023

    as a % of consolidated revenues

         		 Geographic zone Currency
     Franceex. France EuroGBPOthers
    Software & services 83.9%16.0% 87.0%11.4%1.6%
    Flow 91.6%8.4% 94.3%5.7%0.0%
    Data & marketing 97.5%2.5% 97.8%0.0%2.2%
    BPO 100.0%0.0% 100.0%0.0%0.0%
    Cloud & support 99.8%0.2% 100.0%0.0%0.0%
    Cegedim 89.7%10.3% 91.8%6.9%1.3%

    Attachment


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