Yahoo Finanza Cegedim: Growth continued in the third quarter of 2022
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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 |
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The 9M 2022 revenues presentation is available:
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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
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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 |
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Flow |
| 22.6 | 22.6 | 21.5 |
| 66.7 |
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Data & marketing |
| 22.5 | 27.6 | 22.8 |
| 72.8 |
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BPO |
| 12.3 | 13.1 | 13.0 |
| 38.4 |
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Corporate and others |
| 0.7 | 0.7 | 0.8 |
| 2.1 |
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Group revenue |
| 129.2 | 138.3 | 133.3 |
| 400.8 |
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Year 2021
in € million |
| Q1 | Q2 | Q3 | Q4 | Total | ||
Software & services |
| 68.8 | 71.4 | 71.3 | 80.4 | 292.0 |
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Flow |
| 21.0 | 20.7 | 19.8 | 22.7 | 84.2 |
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Data & marketing |
| 19.9 | 24.8 | 21.8 | 31.9 | 98.4 |
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BPO |
| 11.7 | 11.2 | 11.4 | 13.0 | 47.3 |
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Corporate and others |
| 1.0 | 0.5 | 0.5 | 0.7 | 2.7 |
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Group revenue |
| 122.5 | 128.7 | 124.8 | 148.7 | 524.7 |
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Breakdown of revenue by geographic zone, currency and division at September 30, 2022
as a % of consolidated revenues |
| Geographic zone |
| Currency | ||||
| France | EMEA | 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% |
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