Cegedim: first-half 2023 revenues grew at a double-digit pace

Quarterly financial information as of June 30, 2023
IFRS - Regulated information - Not audited

Cegedim: first-half 2023 revenues grew at a double-digit pace

• 12.2% revenue growth in the second quarter, giving first-half growth of 12.5%, led by BPO division
• Successful launch of the Allianz BPO contract
• Public health investments (Ségur de la Santé) contribute €4.3m over the first-half

Boulogne-Billancourt, France, July 27, 2023, after the market close

Revenue

(1)   At constant scope and exchange rates.
(2)   The negative currency impact of 0.3% was mainly due to the pound sterling. The positive scope effect of 0.7% was attributable to the consolidation in Cegedim’s accounts of acquisitions Mesdocteurs, Laponi, Sedia, and Clinityx.

Cegedim generated consolidated first-half 2023 revenue of €301.0 million, up 12.5% on a reported basis and 12.1% like for like⁽¹⁾ compared with 2022. All divisions contributed to the growth, sustaining the good sales momentum seen in the previous quarter. Work on the new contract with Allianz started April 1, 2023, and helped boost the BPO division’s first-half revenue growth to nearly 30%.

Analysis of business trends by division

• Software & Services

Cegedim Santé kept its pace of like-for-like growth above 20%. Ségur public health projects contributed €4.3 million over the first half.

Other French businesses grew at the same pace as in the first quarter, 6.2%, driven by the HR segment and other services.

International businesses built on good first-quarter trends and grew 15.2% in the second quarter, notably in the UK in the doctor and insurance segments.

• Flow

The electronic invoicing and digital data flow business grew 7.4%. Both French and international activities contributed to the growth.

The digital data flow business dealing with reimbursement of healthcare payments in France (Third-party payer) experienced 1.2% year-on-year growth in the second quarter and +5.5% over the first half. Invoicing related to the Allianz third-party payer contract now falls under BPO services (switch was made on April 1).

• Data & Marketing

Data activities grew 16.5% yoy in the second quarter, giving 10.7% growth in the first half, led mainly by sales in France.

In Marketing, advertising in pharmacies continued to grow in the second quarter (+5.6%), reaching growth of nearly 9% for the half.

• BPO

Insurance BPO growth amounted to 65% in the second quarter and 42% in the first half, led by the April 1, 2023, start of the Allianz contract.

Development in BPO for HR departments continues, with growth of 9.4% over the second quarter.

Highlights

To the best of the company’s knowledge, there were no events or changes during the first half of 2023 that would materially alter the Group’s financial situation.

• War in Ukraine

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

Significant transactions and events post June 30, 2023

To the best of the company’s knowledge, there were no post-closing events or changes after June 30, 2023, that would materially alter the Group’s financial situation.

Outlook

Based on H1 2023 revenues up 12.1% like for like⁽¹⁾, and despite the public health, economic, geopolitical, and monetary uncertainty facing the world, the Group is confident it can grow full-year revenues by at least 10% like for like⁽¹⁾ and improve its recurring operating income.

The Group does not expect to make any significant acquisitions in 2023.

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(1) At constant scope and exchange rates.

2023 financial calendar

Financial calendar: https://www.cegedim.fr/finance/agenda/Pages/default.aspx

Annexes

Breakdown of revenue by quarter and division

• Year 2023

• Year 2022

Revenue breakdown by geographic zone, currency, and division at June 30, 2023

Attachment

• Cegedim_CA_1H2023_ENG