Cegedim (CGM) Q2 2024 TU earnings summary

Executive summary

• First half 2024 revenue reached €319 million, up 6.0% reported and 4.6% like-for-like, driven by digitization, marketing, and cloud operations, with the integration of Visiodent from March 1st.

• Growth was supported by strong BPO, cloud, and marketing performance, despite a challenging comparison with 2023's Ségur public health investments and international business slowdown.

• Organic growth for Q2 was 3.3%.

Financial highlights

• Revenue increased by €18.0m year-over-year, with organic growth of €13.8m, structural impact of €3.7m, and currency impact of €0.5m.

• Software & Services: €152.1m (+1.0% reported, -1.7% like-for-like); Cegedim Santé down 11.5% like-for-like due to prior year subsidies.

• Flow: €49.5m (+5.8% reported, +5.7% like-for-like), led by e-business (+7.6%) and third-party payment (+3.1%).

• Data & Marketing: €59.3m (+8.0% reported and like-for-like); marketing up 20% on strong pharmacy media, data slightly down.

• BPO: €39.9m (+21.6% reported and like-for-like), with insurance BPO up 29.5% due to Allianz contract.

• Cloud & Support: €18.1m (+14.5% reported and like-for-like), driven by robust cloud demand.

Outlook and guidance

• Full-year 2024 like-for-like revenue growth guidance maintained at 5%-8%.

• Recurring operating income expected to increase for the year.

• EBITDA and profit outlook remain on plan, with more confidence in profitability than sales.

• Guidance may be revised if geopolitical, macroeconomic, or currency risks worsen.