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Cegedim: Third Quarter Revenue Growth

Regulatory News:

Cegedim, a technology and services company specializing in the healthcare field, posted consolidated Q3 2012 revenues of €207.6 million, up 5.4% on a reported basis and 1.4% like for like.

Following a second quarter during which economic conditions deteriorated in a number of developed countries and clients put off making decisions, like-for-like* revenues returned to growth in the third quarter even though tough conditions persisted.

Cegedim remains confident in its growth potential because its product portfolio meets the needs of a wide variety of markets. In particular, Cegedim’s rich and varied offering fits healthcare players’ demand for “Digital” products and services. Cegedim has become a significant force in the digital field: in the CRM and strategic data sector, with interactive CRM offerings across multiple mobile devices; in the Healthcare professionals sector, with software solutions and drug databases available on the web and tablet computers, and new solutions that help companies market to patients and doctors; and in the Insurance and Services sector, with the creation of online policyholder benefits verification for the electronic reimbursement platform in France.

Last August, Cegedim decided to renew the Performance Improvement Plan it launched in November 2011. All of the costs of the second plan will be recorded in the second half of 2012, and a gross impact of more than €10 million is expected in 2013. Along with revenue growth, this plan is expected to boost the Group’s operating cash flow, making it possible to speed up debt reduction. Lastly, the Group believes it will have an adequate level of liquidity to respect its financial commitments.

  • The change in revenues per sector of activity for the third quarter is as follows:
€ thousands   Q3 2012   Q3 2011   Growth
      Reported   L-f-L*
CRM and strategic data 111,112 111,982 -0.8%   -4.3%
Healthcare professionals 62,623 53,724 +16.6% +9.2%
Insurance and services   33,848   31,337   +8.0%   +8.0%
Group   207,584   197,043   +5.4%   +1.4%

*at constant scope and exchange rates

Like-for-like* revenue growth in the third quarter of 2012 came to 1.4% relative to the same period in 2011. The drop in CRM and strategic data sector revenues was more than offset by the strong growth in the Healthcare professionals and Insurance and Services sectors. The positive impact of the ASP Line acquisition was offset by the sale of Pharmapost, resulting in a net positive contribution to revenues of 0.4%. Currencies made a positive contribution of 3.6%.

  • The change in revenues per sector of activity over nine months is as follows:
€ thousands   9M 2012   9M 2011   Growth
      Reported   L-f-L*
CRM and strategic data 348,310 361,188 -3.6%   -5.9%
Healthcare professionals 205,768 193,957 +6.1% +2.8%
Insurance and services   106,780   100,480   +6.3%   +6.3%
Group   660,858   655,626   +0.8%   -1.5%

*at constant scope and exchange rates

Like-for-like* revenue growth over the first nine months of 2012 came to -1.5% relative to the same period in 2011. The drop in CRM and strategic data sector revenues was only partly offset by growth in the Healthcare professionals and Insurance and Services sectors. Acquisitions had no impact on revenue growth, as the impact of the ASP Line acquisition was offset by that of the Pharmapost sale. Currencies made a positive contribution of 2.3%.

Analysis of business trends by sector

  • CRM and strategic data

Third quarter 2012 revenues came to €111.1 million, down 0.8% on a reported basis. Currencies made a positive contribution of 4.7%. The sale of Pharmapost made a negative contribution of 1.1%. Like-for-like* revenues fell 4.3% over the period.

Sector revenues over the first nine months of 2012 came to €348.3 million, down 3.6% on a reported basis. The sale of Pharmapost had a negative impact of 0.7%, whereas currencies had a positive impact of 3.0%. Like-for-like* revenues fell 5.9% over the period.

In mature markets, even though pharmaceutical companies’ continued belt-tightening was a drag on the market research business in the third quarter, the number of CRM solution users is leveling off, and in some countries even increasing. The stabilization of the situation in Italy and Spain in the third quarter is worth noting. On the other hand, Greece and Portugal remain mired in difficulties. The strong growth at SK&A since the start of the year reflects the success of OneKey in the US. SK&A is a California-based company acquired in January 2010 to strengthen the healthcare professional database offering in the US.

The Group benefited greatly from growth in emerging countries, with fine performances in – among others – Latin and Central America (double-digit growth), and a ramp-up in market research in China.

Cegedim continues its tireless innovation, particularly in digital products and services. Most notably, the new range of CRM products for tablets MI Touch (IOS 6 and Windows 8) offer native integration of functions that create interactive presentations from the digital information generated by healthcare industries. Note that the Group has the first CRM solution that is 100% compatible with tablets running Windows 8. The Group also has specific digital offerings such as ScreenPub that help healthcare companies reach healthcare professionals via their computer screens.

  • Healthcare professionals

In the third quarter of 2012, sector revenues came to €62.6 million, up 16.6% on a reported basis. The ASP Line acquisition boosted revenues by 3.9% over the quarter. Currencies had a positive impact of 3.4%. Like-for-like* revenues rose 9.2% over the period.

Over the first nine months of 2012, sector revenues came to €205.8 million, up 6.1% on a reported basis. The ASP Line and Pharmec acquisitions had a positive impact on revenues of 1.3%, and currencies, a positive impact of 2.0%. Like-for-like* revenues rose 2.8% over the period.

The CHS (Cegedim Healthcare Software) division experienced strong growth in the third quarter after a stable first half. This renewed activity was driven principally by strong growth in products for UK pharmacists following their swift adoption of the Electronic Prescription Service (EPS). Last autumn, after investing in innovative development for the past few years, Cegedim earned the first EPS certification granted by UK health authorities. The division also benefited from growth in sales to pharmacists in France and the growth of US software publisher Pulse.

Point-of-sale advertising in pharmacies and parapharmacies, with RNP, experienced double-digit growth in the third quarter after a tough first half, demonstrating the judiciousness of the business’ reorganization and investment in digital media.

Lastly, the financial lease company, Cegelease, continued to post brisk growth in the third quarter, just as it did over the first six months of the year.

In this sector, the Group also innovates with new digital offerings including:

  • Drug information solutions for consumers, available over the internet ( and on the iPhone (iMediguide); the latter also helps users match brand-name drugs with their generic equivalents.
  • A comprehensive medical practice management solution for tablet computer (Simply Vitale) and a full web solution for healthcare professionals (
  • Solutions allowing healthcare companies to communicate digitally with patients inside pharmacies, personalized by point of sale (Clip Santé), or outside with giant video screens (RNP digital offering).
  • Insurance and services

Sector revenues in the third quarter of 2012 came to €33.8 million, up 8.0% both on a reported basis and like for like.

Over the first nine months of 2012, sector revenues came to €106.8 million up 6.3% both on a reported basis and like for like.

The pick-up in activity noted in July continued throughout the quarter. Thus, revenue growth is back in line with the pace set in Q4 2011 and Q1 2012 following a second quarter in which growth was only up 2.4%.

Growth was principally driven by the double-digit increase in revenue from online third-party payer management services, and the more than 30% growth in Q3 of SRH in France, which provides payroll and HR management outsourcing. Cegedim SRH continues to garner numerous commercial successes.

In this sector, the Group is also very well positioned on online offerings, including the planned launch in 2013 – after a favorable test phase involving 6,000 pharmacies – of 100% secure online verification of complementary health insurance benefits, including real-time reimbursement calculation (Visiodroit).

Financial resources – Third quarter highlights

  • Acquisition

On July 3, 2012, Cegedim completed the acquisition of ASP Line, France’s fourth-largest publisher of pharmacist software, serving more than 1,300 pharmacies present around the country, thus strengthening Cegedim’s leadership position in the pharmacy computerization market in France (see release sent on July 3, 2012). Generating synergies with other Group activities, this acquisition brings with it significant development potential for the years ahead.

Financed by internal financing, these activities represent annual revenues of around €9 million and are part of the consolidation scope of Cegedim Group from July 1, 2012.

  • Award

On September 26, Cegedim received the “Mid Cap Corporate Governance” award, sponsored by L’AGEFI, in recognition of the quality of the transparency and governance practices that the Group has adopted.

Significant post-closing transactions and events

  • Readjustment of bank covenants

On October 3, Cegedim obtained the consent of its banking partners (Banc of America, Banque Palatine, BNP Paribas, BRED Banque Populaire, Caisse Régionale de Crédit Agricole Mutuel Centre Loire, CIC, Crédit Lyonnais, HSBC France, Société Générale) under the credit facility to amend certain covenants thereunder. This consent signals the continued confidence of our banking partners in the Group (see release sent on October 3, 2012).

Cegedim, which was in compliance with its covenants under the credit facility as of June 30, 2012, has agreed additional headroom under its leverage and interest cover financial covenants as set out in the following table.

Period   After   Before
    Leverage   Interest   Leverage   Interest
December 31, 2012   3.60   3.00   3.00   4.50
June 30, 2013 3.60 3.00 3.00 4.50
December 31, 2013 3.50 3.00 3.00 4.50
June 30, 2014 3.50 3.00 3.00 4.50
December 31, 2014 3.25 3.25 3.00 4.50
June 30, 2015 3.25 3.25 3.00 4.50
December 31, 2015   3.00   3.50   3.00   4.50

In relation to these changes, Cegedim has agreed to change the applicable margins under the credit facilities as follows:

Leverage Ratio   Margin (% p.a.)
  Term Loan   RCF EUR   RCF USD
≤ 3.60 and > 3.00 3.75   3.25   3.75
≤ 3.00 and > 2.50 3.25 3.00 3.50
≤ 2.50 and > 2.00 2.75 2.50 3.00
≤ 2.00   2.50   2.25   2.75

Cegedim has also agreed to:

  • No dividend while the Leverage Ratio is greater than 2.50;
  • Reduce permitted Joint Ventures from €200 million to €50 million;
  • Limit acquisitions to €5 million per fiscal year while the Leverage Ratio is greater than 3.00;
  • Limit acquisitions to €25 million per fiscal year while the Leverage Ratio is between 2.00 and 3.00;
  • Limit the shareholder loan payments to a cumulative amount of €5m as long as the Leverage Ratio is greater than 2.00. Total repayment is possible as long as the Leverage Ratio is less than 2.00.

To the best of the company’s knowledge, there have been no other significant events since the closing date.

2012 outlook

In a tough environment, the Group remains confident in its growth potential, while continuing to prioritize innovation, deleveraging and its Performance Improvement Program.

Despite a satisfactory performance in Q3 2012, the Group prefers to remain cautious and therefore confirming that it expects a slight increase in revenue in 2012 combined with a very slight decrease of its EBITDA compared to 2011. The Group also confirms that it has no plans to make further acquisitions by the end of the year.

Financial calendar

The Group will hold a conference call in English this evening, November 8, 2012, at 6:15 pm (Paris time). The call will be hosted by Jan Eryk Umiastowski, Cegedim Chief Investment Officer and Head of Investor Relations.

Contact number:



+33(0)1 70 99 42 77

+1 212 444 0412

UK and other:
+44 (0)20 3106 4822


Conference ID : 7212641

January 15, 2013

  • 3rd Investor Summit

March 4, 2013, after the market closes

  • FY 2012 results announcement followed by a conference call

March 5, 2013, at 11:30 am

  • SFAF meeting to present FY 2012 results

May 6, 2013, after the market closes

  • Q1 2013 revenues announcement

July 30, 2013, after the market closes

  • Q2 2013 revenues announcement

September 19, 2013, after the market closes

  • H1 2013 results announcement

September 20, 2013

  • SFAF meeting to present H1 2013 results

November 7, 2013, after the market closes

  • Q3 2013 revenues announcement

Additional information

The Audit committees and the Board of Directors met in the presence of the Statutory Auditors on November 7 and 8, 2012, to examine Q3 2012 revenue figures.

Complete financial information is available on our website:

A presentation of Cegedim’s third quarter revenues is also available on the website (


  • Revenues by sector and by quarter:

# Figures rounded to the nearest unit

* at constant scope and exchange rates

FY 2012

€ thousands   Q1   Q2   Q3   Q4   Total
CRM and strategic data   111,092   126,105   111,112     348,310
Healthcare professionals 67,296 75,849 62,623 205,768
Insurance and services   35,817   37,115   33,848       106,780
Group   214,205   239,070   207,584       660,858

FY 2011

€ thousands   Q1   Q2   Q3   Q4   Total
CRM and strategic data   113,116   136,091   111,982   149,443   510,631
Healthcare professionals 65,502 74,732 53,724 65,837 259,795
Insurance and services   32,893   36,251   31,337   40,557   141,037
Group   211,510   247,073   197,043   255,837   911,463
  • 9 months revenues by sector and by region are as follows:
    France   EMEA ex. France   Americas   APAC
CRM and strategic data   32%   34%   24%   10%
Healthcare professionals 70% 26% 4% 0%
Insurance and services   100%   0%   0%   0%
Group   55%   26%   14%   5%
  • 9 months 2012 revenues by sector and by currency are as follows:
    EUR   USD   GBP   Others
CRM and strategic data   50%   20%   4%   26%
Healthcare professionals 72% 4% 23% 1%
Insurance and services   99%   -   -   1%
Group   65%   12%   9%   14%

About Cegedim:


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 8,200 people in more than 80 countries and generated revenue of €911 million in 2011. Cegedim SA is listed in Paris (EURONEXT: CGM).

To learn more, please visit:,

And follow Cegedim on Twitter: #CegedimGroup.

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