Cegedim: 2020 revenue virtually stable like for like
Quarterly financial information as of December 31, 2020
IFRS – Regulated information – Not auditedCegedim: 2020 revenue virtually stable like for likeLike-for-like revenues grew 2.3% in the fourth quarter of 2020Targeting stable recurring operating income1 in 2020 vs. 2019Targeting positive like-for-like revenue growth in 2021 vs. 2020Boulogne-Billancourt, France, January 26, 2021, after the market closeCegedim 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.RevenueAlways 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 revenuesIn 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 & ServicesThe 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.·FlowThe 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 & MarketingThe 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.·BPOThe 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.
HighlightsTo 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, 2020To the best of the company’s knowledge, there were no post-closing events or changes that would materially alter the Group’s financial situation.OutlookGiven 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.Financial calendar
AnnexesDivision profilesSoftware & 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: comprisesdata 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 sectorSector / division comparisonQ4 2020 revenues by sector and by division
Breakdown of revenue by quarter and division·Year 2020
·Year 2019
Breakdown of revenue by geographic zone and division·At December 31, 2020Breakdown of revenue by currency and division·At December 31, 2020
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.AttachmentCegedim_CA_FY2020_ENG
