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Cegedim — Earnings Release 2008
Nov 14, 2008
1189_iss_2008-11-14_f1dc2a2a-6cce-4963-9932-9312678d1a04.pdf
Earnings Release
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PRESS RELEASE
QUARTERLY FINANCIAL INFORMATION AT 30 SEPTEMBER 2008
BUSINESS IS IN LINE WITH FORECASTS 2008 OUTLOOK CONFIRMED
Paris, 14 November 2008 - Cegedim, the world leader in Customer Relationship Management (CRM) for the pharmaceutical industry, announces consolidated revenues of €607 million for the first nine months of 2008, a 16 % increase. The increase in revenues for continuing operations at constant exchange rates (*) came to 21 %.
Revenues were in line with Cegedim Group's expectations across the board, which confirms the outlook for FY 2008 despite more difficult economic conditions. These estimates are notably strengthened by the balance in the geographic breakdown of revenues, the positive impact of the Dendrite acquisition, the fact that the fourth quarter is always strong, and the healthcare sector's historically defensive aspect.
Revenues (€ thousands) for the first 9 months 2008 2007 Change 2008 at constant consolidated scope and exchange rates (*) 2007 at constant consolidated scope and exchange rates (*) Organic growth at constant exchange rates (*) CRM and strategic data 350,240 312,838 12.0 % 362,565 304,537 19.1 % Healthcare professionals 179,795 137,703 30.6 % 186,269 137,703 35.3 % Insurance and services 76,945 74,308 3.6 % 73,296 71,463 2.6 % Total revenues 606,980 524,849 15.6 % 622,130 513,703 21.1 % First quarter 189,827 136,050 39.5 % Second quarter 227,945 197,090 15.7 %
9 months 2008 consolidated revenues (not audited)
Third quarter 189,208 191,708 -1.3 %
Note: as a result of the sector reorganization initiated 30 June, revenues of the former "Technology and services" sector are now split among the Group's three historical sectors. 2007 and 2008 figures have been restated. For 2008, the impact is €9m on the first sector, €41m on the second and €9m on the third.
(*) As a reminder, like-for-like growth is not restated for Dendrite's activities, which were acquired in May 2007 and whose impact on the "CRM and strategic data" sector is no longer distinguishable due to intervening mergers.
Third-quarter revenues came to €189 million, down a slight 1.3 %, nearly offsetting a strongly unfavorable currency effect and the expected downturn in business from Cegedim's biggest US client.
"CRM and strategic data" revenues rose 12 %, boosted by the excellent performance of healthcare sector market research, the good reception of Dendrite products in Europe (Mobile Intelligence) and its global presence. The increase in sales for continuing operations at constant exchange rates (*) came to 19 %, and the currency impact was €13.8 million.
The "Healthcare Professionals" sector confirmed its strong momentum, with nine-month revenues up 31 %. The pharmacist, physician and paramedic software publishing business generated nice gains by continuing its European development, principally in the UK, Belgium, Spain and Italy. The increase in sales for continuing operations at constant exchange rates came to 35 %, and the currency impact was €7.5 million. Cegelease also contributed heavily to this sector's growth.
Revenues in the "Insurance services" sector rose by 4 % after a 1 % decline in the first half. This rebound is proof of the soundness of investments in the sector and the acquisitions in computerization for insurers and mutual health insurers, as well as in data flow management.
Cegedim operates in the healthcare field, a historically defensive sector. However, to counter the repercussions of the current financial crisis, which will only marginally affect the Group, Cegedim has decided to ratchet up the restructuring and integration plan it initiated following the acquisition of Dendrite, and to limit its investments. Thus, the company's top priorities now are generating free cash flow, cutting costs and reducing debt.
Important events and transactions in Q3 2008
The Group continues to make targeted acquisitions, including the July acquisition of Reportive. The move expands Cegedim Group's expertise in the field of performance management software.
Financial situation and Q3 2008 results
The third-quarter operating margin from ordinary operations is in line with Cegedim Group's full-year estimates.
The trend in net debt is in line with the forecasts made at the time of Dendrite Group acquisition in May 2007.
2008 outlook
Cegedim Group is maintaining its 2008 guidance: with revenues between €840m and €850m and an operating margin in line with 2007. For the avoidance of doubt, it excludes exceptional charges (IFRS) and restructuring and integration costs.
Calendar
Fourth-quarter 2008 revenues will be announced during the week of 9-13 February 2009.
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, pharmaceutical companies, healthcare professionals and insurance companies.
The world leader in pharmaceutical CRM, Cegedim is also one of the leading suppliers of strategic healthcare industry data. Cegedim employs more than 8,000 people in 80 countries and generated revenue of €753 million in 2007. To learn more, please visit our website: www.cegedim.com
Listed on NYSE Euronext Paris, compartment B – ISIN FR0000053506 – Reuters CGDM.PA – Bloomberg CGM
Media inquiries Investor relations
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Aude Balleydier Sylvie Delangle Tel: + 33 (0)1 49 09 68 81 [email protected]
Presse & Papiers Guillaume de Chamisso Attaché de Presse Tel: + 33 (0)1 77 35 60 99 [email protected]
Jan Eryk Umiastowski Tel: + 33 (0)1 49 09 33 36 Media Relations [email protected]