Cegedim (CGM) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 revenue reached €161.3 million, up 3.5% reported and 4.5% like-for-like year-over-year, driven by marketing, health insurance, HR, and cloud activities.

• Growth was partially offset by the deconsolidation of INPS (In Practice Systems) in December 2024 and the full-quarter consolidation of Visiodent.

Financial highlights

• Group revenue increased to €161.3 million from €155.9 million, a 3.5% reported and 4.5% like-for-like rise, with a slight positive currency impact of €0.2 million.

• Software & Services revenue declined 2.6% reported and 0.4% like-for-like, mainly due to INPS deconsolidation.

• Flow division revenue was €27.6 million, up 8.9% reported and 8.8% like-for-like, driven by e-business and third-party payer solutions.

• Data & Marketing revenue was €29.9 million, up 10.6% reported and like-for-like, with marketing up 14.9% and data up 5.9%.

• BPO division grew 4.3% to €21.1 million, led by insurance overflow and compliance services.

• Cloud & Support division grew 14.8% in Q1, reflecting expanded sovereign cloud offerings.

Outlook and guidance

• Like-for-like revenue growth guidance maintained at 2%-4% for the full year, with recurring operating income expected to increase.

• Q2 cloud division growth expected to slow due to non-renewal of a low-margin contract.

• Guidance subject to revision if geopolitical, macroeconomic, or currency risks worsen.