Koblenz, August 8, 2019 - CompuGroup Medical SE (CGM) has reported its financial results for the second quarter of 2019 today. Consolidated revenue was around EUR 187 million, just slightly below the exceptional quarter of the previous year, which was marked by the peak of the rollout of the telematics infrastructure (TI). Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) on a pro forma basis amounted to EUR 44 million in the second quarter of 2019, with an operating margin of 24%. The guidance for the full year 2019 with revenues in the amount of EUR 720 to 750 million and an EBITDA of EUR 190 to 205 million is reaffirmed.
The revenue development in the second quarter as well as for the full year is characterized by a very strong increase in recurring revenues. "While the second quarter of last year was significantly impacted by the revenue peak of the TI introduction in general practitioners' practices, CompuGroup Medical this year successfully increases the basis of our business's particular stability - recurring revenues - by 10% across the Group," says Michael Rauch, CFO of CGM. The significant growth in TI subscriptions over the past twelve months has also contributed to this. Compared to prior year CGM recorded a 13% increase in recurring revenues in the general practitioners' segment. The hospital information systems and pharmacy software segments also grew their recurring revenues by 7 and 4%, respectively.
The pro forma operating result in the second quarter amounted to EUR 44.3 million and was thus, as expected, EUR 10 million lower than that of the extraordinary prior-year quarter. An adjustment to the accounting of stock options in the course of the resignation of a member of the Management Board leads to a reported EBITDA for the second quarter of EUR 37.4 million and will burden the full 2019 year with EUR 3.9 million. "We see ourselves on track to achieve our 2019 EBITDA ambition, even despite this one-off effect" comments Michael Rauch.
The Pharmacy Information Systems (PCS), Hospital Information Systems (HIS) and Health Connectivity Services (HCS) divisions grew more strongly than expected in the second quarter of 2019. The strongest organic growth was achieved by the HIS segment with 12%, driven by the strong overall performance in the DACH (German speaking) region and a significant recovery of the hospital market in Poland. In May 2019, CGM won the largest order in the company's history. The implementation of the CGM hospital information system in a complete region in Austria brings an order volume of over EUR 100 million, which will lead to corresponding revenues distributed over ten years.
"The figures presented today show a further strong increase in recurring revenues with a solid margin. This determines our value and gives us leeway for further growth," says Frank Gotthardt, Chairman and CEO of CompuGroup Medical SE. "We continue to be particularly pleased with the good revenue development in the Pharmacy Information Systems, Hospital Information Systems and Health Connectivity Services segments, which have all grown faster than expected." And Gotthardt also sees very large growth opportunities for the future: "The rollout of the telematics infrastructure in pharmacies and hospitals and the nationwide rollout of important value-added applications such as emergency data records, signed electronic doctor's letters and electronic medication plans are very important and encouraging for our market in Germany. Overall, the importance of eHealth applications is growing enormously in our strong European markets, but also worldwide. Our strong position with doctors, dentists, pharmacies, hospitals, rehabilitation and care facilities and other service providers enables us to build and implement all the important, exciting and helpful products for our customers that are needed for smart connectivity services, not least with citizens. The determination for the rapid and sustainable digitization of healthcare systems and the associated improvements is very well characterized by the initiative of the German Minister of Health, Jens Spahn, 'App on Prescription'."
Conference call for journalists, investors and analysts:
The Management Board of CompuGroup Medical SE will present the results today at 3 p.m. (CEST) in an analyst and investor conference.
To participate in the conference call, please dial one of the following telephone numbers and enter the confirmation code:
+49 69 2017 4422 0 (Germany)
+44 20 300 924 70 (UK)
+1 877 423 083 0 (USA)
Confirmation code: 44948373#
A presentation will be available for download here prior to the conference call and can also be viewed live at: https://webcasts.eqs.com/compugroup20190808/no-audio
About CompuGroup Medical SE
CompuGroup Medical is one of the leading eHealth companies in the world. With a revenue base of approximately EUR 717 million in 2018, its software products are designed to support all medical and organizational activities in doctors' offices, pharmacies, laboratories and hospitals. Its information services for all parties involved in the healthcare system and its web-based personal health records contribute towards safer and more efficient healthcare. CompuGroup Medical's services are based on a unique customer base of more than 1 million users, including doctors, dentists, pharmacists and other service providers in inpatient and outpatient facilities. With locations in 19 countries and products in 56 countries worldwide, CompuGroup Medical is the eHealth company with one of the highest coverage among eHealth service providers. Approximately 5,000 highly qualified employees support customers with innovative solutions for the steadily growing demands of the healthcare system.
Contact for media representatives:
CompuGroup Medical SE
Head of Brand Communication
P +49 (0) 261 8000-6100
F +49 (0) 261 8000-3100
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