Cegedim (CGM) Q3 2024 TU earnings summary

Executive summary

• Nine-month 2024 revenue reached €475.8 million, up 5.9% reported and 4.3% like-for-like year-over-year, with Q3 revenue at €156.8 million, up 5.7% reported and 3.8% like-for-like.

• All divisions contributed to growth, with especially strong performances in BPO, Data & Marketing, and Cloud & Support, while Software & Services faced headwinds from subsidy absence and UK refocus.

• Main growth drivers included Marketing, BPO, HR, and Cloud solutions.

Financial highlights

• Q3 organic growth was 3.8%, with a structural impact from Visiodent integration and a positive currency effect from the British pound.

• Software & Services generated €227.7 million in nine months and €75.6 million in Q3; Data & Marketing posted €87.5 million in nine months (+10.8%) and €28.2 million in Q3 (+17%).

• BPO division reported €61.5 million in nine months (+18.8%) and €21.6 million in Q3 (+13.9%); Cloud & Support achieved €25.8 million in nine months (+13.9%) and €7.7 million in Q3 (+12.5%).

• Flow division posted €73.2 million in nine months (+5.7%) and €23.7 million in Q3 (+5.5%).

• France accounted for 90.1% of consolidated revenues at September 30, 2024.

Outlook and guidance

• 2024 like-for-like revenue growth is expected at the lower end of the 5–8% range, with recurring operating income anticipated to increase.

• For 2025, growth is expected to be minimal due to a significant decline in UK revenue, though EBIT and EBITDA should benefit.

• Ségur de la Santé wave two subsidies are under negotiation and may add €5 million in sales if launched in H2 2025.

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