CompuGroup Medical Reports Decline in Profit and Revenue for First Half of 2023

Medical software company Compugroup shrinks in the first half of the year

Revenues fell by six percent to 562 million euros in the first half of the year, as the software company specializing in healthcare announced on Monday. However, excluding one-off effects in connection with the replacement of hardware connectors and the software upgrade for the telematics infrastructure, there was growth of one percent. The adjusted operating profit (EBITDA) fell by 14 percent to 114 million euros. In July, Compugroup Medical lowered its targets for the year as a whole in view of the sluggish business and higher investments in artificial intelligence (AI). Accordingly, turnover could fall by up to two percent. Previously, the management had forecast growth of four and six percent. Adjusted EBITDA is expected to be between 220 and 250 million euros instead of 270 to 310 million euros. (Report by Philipp Krach, edited by Ralf Banser. If you have any questions, please contact our editorial team at [email protected] (for politics and the economy) or [email protected] (for companies and markets).)

Compugroup profit drops significantly in the second quarter

KOBLENZ (dpa-AFX) - The software provider Compugroup, which specializes in medical practices and clinics, has recorded a significant drop in profits in the second quarter. Adjusted for special effects, earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 27 percent year-on-year to just under 53.6 million euros in the three months to the end of June, as the company, which is listed in the second-tier stock index SDax, announced on Monday. Net profit fell by more than half to 13.8 million euros. The main reason for this is a significant drop in turnover, which the company reported only last week. In this context, Compugroup also reduced its annual targets. The share price collapsed as a result and has not yet recovered significantly. In the second quarter, turnover - as already known - slipped by 9 percent year-on-year to a good 277 million euros. Business with medical practices in particular was weaker. This was mainly due to one-off effects from the previous year. The division is also likely to record a loss for the year as a whole. Overall, business in surgeries and hospitals is significantly weaker than previously expected, the Koblenz-based company reported last week. In addition, a second introduction phase of a government initiative in France is now not expected until 2025. In Germany, too, projects in connection with the Hospital Future Act are not progressing as quickly as hoped. In addition, higher investments are weighing on business, including for artificial intelligence. For the year as a whole, revenue is likely to fall by up to two percent and, at best, remain stable. Compugroup is factoring out exchange rate effects as well as acquisitions and disposals of parts of the company. Previously, CEO Michael Rauch's plans had included a four to six percent increase in turnover. Management expects earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for special effects to be between 220 and 250 million euros in 2024. Previously, the range had been 270 to 310 million euros./mis/men/jha/

CompuGroup Medical SE & Co. KGaA publishes half-year figures for the financial year 2024

CompuGroup Medical SE & Co. KGaA publishes half-year figures for the financial year 2024 Against the backdrop of the ad-hoc announcement on July 9, 2024, the general partner of CompuGroup Medical SE & Co. KGaA (ISIN: DE000A288904 | WKN: A28890) ("CGM") has decided to prepone the publication of the financial results for the first half of the financial year 2024. The financial results for the first half of the financial year are as follows: In the Ambulatory Information Systems (AIS) segment (since 2024 including the former CHS segment) revenues in the first six months of 2024 decreased by 10% year-on-year to EUR 338 million, mainly due to one-time effects related to the Telematics Infrastructure hardware connector exchange and software upgrade in the first half of the prior year. Organically and excluding the TI one-time effects, revenues were on the prior year level. Recurring revenues grew by 4%, increasing the recurring share by 10 percentage points to 77%. Revenues in the Hospital Information Systems (HIS) segment increased in the first six months of 2024 by 4% to EUR 156 million. Adjusted for acquisitions and FX effects, organic growth was 4%, mainly attributable to increased revenues in Austria, Spain and from projects related to the Hospital Future Act. Recurring revenues increased to EUR 113 million, corresponding to 73% of total revenues. In the Pharmacy Information Systems (PCS) segment revenues declined in the first six months of 2024 by 1 % to EUR 68 million, in particular due to strong non-recurring sales in prior year period. Organically, revenues declined by 1%. Recurring revenues in the PCS segment increased by 6% to EUR 49 million compared to the same period of the prior year. In all three segments investments into the future of e-health were made including Artificial Intelligence, data-based and patient-centered solutions. R&D expenses for the group amounted to EUR 125 million in the first six months of 2024 (prior year period: EUR 120 million). On July 9, CGM revised its guidance for the financial year 2024 for organic revenue growth and adjusted EBITDA. The half-year interim report published today contains the full revised guidance for the financial year 2024. The revised guidance is as follows (compared to the original guidance published on February 7, 2024): Group Organic revenue development (adjusted for acquisitions and currency effects) is now expected in a range between -2% and 0% year-on-year (previously 4 % and 6 %). The share of recurring revenues as of total revenues is expected unchanged between 65 % and 70 %. Adjusted EBITDA is now expected in a range between EUR 220 million and EUR 250 million (previously EUR 270 million and EUR 310 million). Adjusted earnings per share (diluted) are now expected in a range between EUR 1.55% and EUR 1.95% (previously: increase of approximately 10 % compared to the prior year). Free cash flow is now expected in a range between EUR 40 million and EUR 60 million (previously EUR 70 million and EUR 100 million). Segments For the AIS segment CGM now expects an organic revenue decrease by a low to mid single-digit percentage rate (previously growth in the low to mid-single digit percentage range). For the HIS segment CGM now expects an organic revenue growth by a low to mid single-digit percentage rate (previously growth in the mid to high-single digit percentage range). For the PCS segment CGM continues to expect an unchanged organic revenue growth in the low to mid single-digit percentage range. The full financial statements for the first half including explanations of the adjustments in earnings figures year can be found in the half year financial report at www.cgm.com/ir-publications.