Public company with share capital of 13,336,506.43 euros
Trade and Commercial Register: Nanterre B 350 422 622
Quarterly Financial Information as of September 30, 2010
IFRS - Regulated information - not Audited
Cegedim: Third-quarter revenues up 6.6% and up 4.4% within the first nine
The Group reiterates its outlook for FY 2010
Paris, November 15, 2010 - Cegedim, a global technology and services company
specializing in the healthcare field, generated consolidated third-quarter
2010 revenues of EUR211 million, a 6.6% improvement on a reported basis and a
slight 0.8% drop like for like*.
The third quarter was marked by promising acquisitions and a still very strong
level of activity in the Insurance and services sector, offsetting the
expected slowdown at Cegelease, the wait and see attitude of UK physicians in
their investment decisions, and continued deferrals in the implementation of
CRM projects. The Group expects fourth-quarter reported growth on a par with
that of the third quarter. Thanks to the combination of numerous commercial
successes, renewed growth at the physicians' software business in the UK, the
continuation of positive trends at the strategic data activity and recent
acquisitions, the Group expects 5% growth in 2010 on a reported basis. As a
reminder, fourth-quarter revenues are typically 10% to 15% higher than the
Group's quarterly average.
Over the first nine months of 2010, revenue growth was 4.4% on a reported
basis and stable like for like (L-f-L)*.
The change in revenues per sector of activity for the 3rd quarter
is as follows
Change Q3 2010/2009
EUR thousands 3d quarter 2010 3rd quarter 2009 Reported L-f-L*
CRM and strategic data 122,532 113,429 +8.0% 0.0%
Healthcare professionals 57,822 58,780 -1.6% -6.3%
Insurance and services 30,802 25,810 +19.3% +8.1%
Group 211,157 198,019 +6.6% -0.8%
Q3 2010 like-for-like* revenues fell 0.8% compared with the year-earlier
period. Currencies and acquisitions boosted revenues by 3.4% and 4.0%
The change in revenues per sector of activity for the nine first
months is as follows
Change Q3 2010/2009
EUR thousands 9M 2010 9M 2009 Reported L-f-L*
CRM and strategic data 371,639 354,175 +4.9% -1.0%
Healthcare professionals 196,560 196,438 +0.1% -2.0%
Insurance and services 91,793 81,311 +12.9% +9.3%
Group 659,992 631,924 +4.4% 0.0%
* at constant scope and exchange rates
Over the first nine months of 2010, like-for-like* growth was stable compared
with the same period in 2009. Currencies and acquisitions boosted revenues by
1.9% and 2.5% respectively.
The acquisitions made over the first nine months are right in line with the
external growth strategy that the Group presented at the time of its December
2009 capital increase. They will not prevent the Group from fully respecting
its covenants. As a reminder, the EUR300 million bond issue of July 27, 2010,
was intended solely to refinance existing bank debt.
Analysis of business trends by sector
CRM and strategic data
Over the first nine months of 2010 sector revenues amounted to EUR371.6
million, up 4.9% on a reported basis. Currencies and acquisitions boosted
revenues by 3.0% and 2.9% respectively. Like-for-like* revenues fell 1.0% over
The third quarter was marked by hesitancy among German clients due to the
imposition over the summer of a 10% tax on pharmaceutical companies.
Strong sales momentum continues in the emerging countries, among other
markets. The Group won several new contracts, for example in Brazil and
Mexico, countries where Cegedim is now experiencing very impressive growth.
Furthermore, the Group continues to reinforce its positions in new activities,
such as Compliance, with for example the signature of a significant contract
in the US.
The spirit of innovation at Cegedim, number one worldwide in CRM for the
pharmaceutical industry, was yet again recognized with new contract wins,
including a new contract in the for Mobile Intelligence on iPad.
Lastly, Cegedim is fully benefiting from the successful operational and
commercial integration of SK&A, which has allowed the Group to enhance and
strengthen its OneKey offering in the US.
The strategic data business, one of the principal market research companies
specializing in the pharmaceutical industry and present worldwide, continues
to post a strong recovery. The Group expects this trend to continue in the
fourth quarter, which as a reminder is typically the most robust of the year
in terms of activity.
Over the first nine months of 2010, sector revenues came to EUR196.6 million,
stable on a reported basis. Currencies and acquisitions boosted revenues by
0.7% and 1.3% respectively. Like-forlike* revenues were down by 2.0% over the
Like-for-like* sector revenues fell by 6.3% in the third quarter. This was
principally attributable to:
- A tangible decline in Cegelease's business, as expected, following an
exceptional year 2009 ;
- Against our expectations, UK physicians remain on the sidelines. Early
announcements regarding the reorganization of the UK healthcare system
indicate that one outcome will be to give physicians more autonomy in
choosing prescriptions, which will create opportunities for the software
offerings of the Cegedim subsidiary specializing in the computerization
of UK physicians. With an eye on these future developments, the company
has already created a 50/50 joint venture with its principal competitor,
EMIS, to facilitate patient data sharing among physicians
The Group has seen very good performances from its businesses specializing in
physician computerization in France, Belgium and Spain (particularly in the
Madrid region), physical therapist computerization, and pharmacist
computerization in France and the UK.
Lastly, the acquisition of Pulse, a company specializing in electronic
healthcare records (EHR) management in the US, will enable Cegedim Healthcare
Software, a European leader in the field, to become a global player and
capitalize fully on the considerable new opportunities in the US market.
Insurance and services
Over the first nine months of 2010 sector revenues came to EUR91.8 million,
an 12.9% increase on a reported basis. Acquisitions boosted revenues by 3.6%.
Like-for-like* revenues rose 9.3% over nine months.
Cegedim Activ is number one in software and services for the personal
insurance industry. It continues to deliver numerous commercial successes and
top-notch operating performances, thereby demonstrating that its software and
services offerings are well suited to a changing health insurance market in
which differentiation and productivity gains are indispensable. For example,
its new multi-plan platform, ACTIV'RO, is already recognized as the industry
In addition, Cegedim Active is currently creating an IT system for the
Assurance Maladie Obligatoire (AMO) and Régime d'Assistance Médicale (RAMED)
public health insurance schemes in the Republic of Mali.
It is also worth noting the continued strong sales momentum at Cegedim SRH,
the specialist in outsourced payroll and HR management services.
During the period, to the best of the company's knowledge, there were no
events or changes of the sort to significantly alter the Group's financial
situation. The Group is in full compliance with all of its covenants.
3rd quarter highlights
Extension of the average maturity of the debt
As part of its policy of diversifying and extending the average maturity of
its debt, Cegedim (BB+ S&P), completed on July 27 issuance of a EUR300 million
bond maturing in 2015, with a fixed annual coupon of 7.00% payable every six
months. The strong demand generated by the operation, finalized in just half a
day, the quality of the interested parties, and geographic diversity of the
investors - of which 70% were located outside of France - enabled Cegedim to
raise the EUR300 million under favorable conditions. At the same time, the
debt issue demonstrates Cegedim's ability to tap financial markets.
On July 27 Cegedim finalized the acquisition of Pulse Systems, Inc., a leading
US healthcare software and services supplier. The move gives Cegedim access to
the US market for the computerization of healthcare professionals at a very
critical time for the Electronic Health Records (EHR) and Practice Management
(PM) software markets. Founded in 1997, Pulse Systems has developed an
extremely sophisticated and scalable ambulatory healthcare IT solution - Pulse
Patient Relationship Management. This solution includes EHR, PM,
e-Prescribing, Revenue Cycle Management services, etc. The company is based in
Wichita and has more than 100 employees. Pulse's businesses represent
estimated annual revenues of around $16 million in 2010 and will make a
positive contribution to the Group's consolidated results from H2 2010
onwards. Pulse is profitable and will likely continue to grow in a rapidly
expanding sector: it expects to increase its revenues more than four-fold
Building on the Target Software acquisition in 2005, the Dendrite acquisition
in 2007 and the SK&A acquisition earlier this year, this new addition in the
US is squarely in line with the Group's global strategy. It will enable the
Group to leverage its complementary activities in North America and transform
its European Cegedim Healthcare Software division into a global player by
utilizing the Pulse solutions to expand its presence in the US market.
Cegedim finalized the acquisition of Deskom a leading French B-to-B invoice
dematerialization company, on September 6th. The deal is an opportunity for
Cegedim EDI, its professional electronic data management department, to build
on its leadership in the field.
The Deskom acquisition allows Cegedim EDI, the healthcare data exchange
leader, to move ahead with its strategy of opening its services to all
business sectors and becoming Europe's top electronic invoicing network, able
to handle any request regardless of invoice volumes, project complexity, or
the number of countries involved.
These activities represent annual revenues of around EUR4 million and is part
of the consolidation scope of Cegedim Group for H2 2010.
These two deals were financed by internal financing.
New trademark strategy and visual identity for the Group
In order to strengthen its image, Cegedim Management decided to simplify the
brand's visual identity for the Group and its main healthcare Business Units.
Each Business Unit's logo and name will reflect a key description of its
overall activity. Therefore, Cegedim Dendrite has been renamed Cegedim
Relationship Management. This change is inspired by the Group's desire to
present its customers with a more coherent, unified image of all of its
businesses and to succinctly convey its commitment to providing them with the
most advanced products and services in the industry. It is also a way of
expressing the successful integration of Dendrite, as the new visual identity
will incorporate some graphic elements from its logo.
These changes are taking place gradually from September 24, 2010. An analysis
of the possible accounting consequences of this new trademark strategy is
still under way.
As part of its new brand strategy and to simplify and modernize this window on
the Group, Cegedim has recently launched its new corporate website :
www.cegedim.com This new, redesigned portal does more to emphasize the Group's
various activities and gives users direct access to the sites of its Business
Units, while incorporating traditional sections on Recruitment, Press and
Finance : www.cegedim.com/finance.
Significant post-closing transactions and events
Post closing, to the best of the company's knowledge, there were no events or
changes of the sort to significantly alter the Group's financial situation.
Acquisitions made during the first nine months are in line with the external
growth policy the Group presented at the time of the December 2009 capital
increase. These acquisitions did not prevent the Group from meeting all of its
covenants. We recall that the sole purpose of the bond issue for EUR300
million on July 27, 2010, was to refinance existing bank debt.
Given its adaptability, good regional mix and business mix of revenues,
commercial momentum and half-year performances, the Group confirms its goal to
consolidate leadership in the global healthcare market with revenue growth of
approximately 5% for 2010
The Group reiterates its target of 2010 operating profit on a par with the
The Group will hold a conference call this evening (November 15) at 6:15 pm in
French and 7:00 pm in English at the following number (Paris time):
+44 (0) 1452 586949 Access code: 4636625972
January 11, 2011
Investors Day (in Boulogne Billancourt / France)
February 4, 2011 (after the stock market closes)
2010 revenues announcement
April 13, 2011 (after the stock market closes)
2010 annual results
April 14, 2011
May 4, 2011 (after the stock market closes)
2011 Q1 revenues
Week of July 25 to August 5, 2011 (after the stock market closes)
2011 Q2 revenues
September 23, 2011 (after the stock market closes)
2011 S1 results
September 26, 2011
November 9, 2011 (after the stock market closes)
2011 Q3 revenues
The Audit Committee met in the presence of the Statutory Auditors on
November 10 to review the third-quarter revenue figures.
Complete financial information is available in the half-year financial report,
the reference document and on the website www.cegedim.com/finance.
Cegedim's third-quarter revenues presentation is also available on the
Revenues by sector and by quarter#:
# Figures rounded to the nearest unit.
EUR thousands Q1 Q2 Q3 Q4 Total
CRM and strategic data 111,532 137,575 122,532 371,639
Healthcare professionals 64,461 74,278 57,822 196,560
Insurance and services 29,627 31,364 30,802 91,793
Group 205,620 243,217 211,157 659,992
Year 2009 pro-forma
For information, Revenues at June 30, 2009 were restated between sectors for
an amount of EUR4.4 million. In order to continue streamlining the Group's
structure, certain activities of the Healthcare professionals and Insurance
and services sectors have been linked to entities of the CRM and strategic
data sector. Pro-forma revenue is mentioned below.
EUR thousands Q1 Q2 Q3 Q4 Total
CRM and strategic data 117,523 123,223 113,429 144,110 498,285
Healthcare professionals 65,247 72,411 58,780 67,817 264,254
Insurance and services 25,892 29,609 25,810 30,222 111,533
Group 208,662 225,245 198,018 242,148 874,072
By sector of activity and currency, the distribution of revenues
for the nine first months of 2010 is as follows:
Euro USD GBP Others
CRM and strategic data 51% 23% 4% 22%
Healthcare professionals 77% 1% 22% 0%
Insurance and services 99% - - 1%
Group 65% 13% 9% 13%
By sector of activity and geographic zone, the distribution of
revenues for the nine first months of 2010 is as follows:
France EMEA ex France Americas APAC
CRM and strategic data 31% 34% 26% 9%
Healthcare professionals 75% 24% 1% -
Insurance and services 99% 1% - -
Group 54% 27% 15% 5%
Founded in 1969, Cegedim is a global technology and services company
specializing in the healthcare field. Cegedim supplies services, technological
tools, specialized software, data flow management services and databases. Its
offerings are targeted notably at healthcare industries, life sciences
companies, healthcare professionals and insurance companies. The world leader
in life sciences CRM, Cegedim is also one of the leading suppliers of
strategic healthcare industry data. Cegedim employs 8,600 people in more than
80 countries and generated revenue of EUR874 million in 2009. Cegedim SA is
listed in Paris (EURONEXT: CGM).
To learn more, please visit: www.cegedim.com