Cegedim (CGM) Q4 2024 TU earnings summary

Executive summary

• Full year 2024 revenue reached €654.5 million, up 6.3% reported and 4.7% like-for-like, with all divisions contributing to growth.

• Q4 2024 revenue was €178.7 million, a 7.2% reported increase and 5.9% like-for-like, with broad-based divisional growth.

• Acquisition of Visiodent in February 2024 and voluntary administration of INPS (UK) in December, leading to deconsolidation.

• Strongest annual growth from Marketing, Health Insurance, HR, and Cloud businesses.

• All operating divisions contributed to annual and Q4 growth.

Financial highlights

• Software & Services division revenue was €307.8 million, up 1.8% reported but down 1.2% like-for-like, impacted by the end of Ségur de la Santé subsidies.

• Flow division revenue was €100.3 million, up 7.3% reported and 7.2% like-for-like, with strong Q4 growth of 12%.

• Data & Marketing division grew 9.6% to €125.9 million, with marketing up 19.9% and data up 1.6%; Q4 marketing up 8.2%.

• BPO division revenue was €82.7 million, up 15.8%, driven by insurance BPO (20.2% growth) and business services BPO (5.5% growth).

• Cloud & Support division posted €37.8 million, up 11.3%, aided by ANSSI SecNumCloud certification.

Outlook and guidance

• 2025 revenue growth is expected to be low, around 1–2% reported, due to the loss of INPS/IPS revenue; excluding this, organic growth would be about 5%.

• EBIT margin for 2024 is projected at approximately 5.5%, slightly below 6%.

• Recurring operating income is expected to continue improving, with significant non-cash adjustments from INPS deconsolidation.

• Focus for 2025 will be on efficiency, margin improvement, and cost-cutting.

• BPO division profitability is expected to improve, with Allianz contract break-even anticipated by end of 2025 and significant improvement in 2026.