CompuGroup Medical SE

12/07/2020 | Press release | Distributed by Public on 12/08/2020 17:00

CompuGroup Medical expects revenues of EUR 1 billion in 2021 and invests in growth acceleration

  • CompuGroup Medical is planning for an approximately 20 % increase in revenue for 2021
  • Moderate adjusted EBITDA development expected for 2021
  • Organic growth is being accelerated
  • Significant increase in investment in new technologies and distribution capabilities to benefit from the rapidly growing trend towards digitization in the healthcare sector
  • Confirmation of 2020 guidance which had been raised in August

Koblenz. Today, CompuGroup Medical Management SE's Administrative Board resolved the budget plans for the financial year 2021. The Joint Committee of CompuGroup Medical SE & Co. KGaA will discuss this on December 14, 2020.

For the financial year 2021 very strong revenue growth of around 20 % is expected. This includes the two significant acquisitions in 2020, the acquisition of parts of the German and Spanish hospital information systems from Cerner, which was closed in July 2020, as well as the acquisition of US eMDs, Inc., which was announced on November 23, 2020. Effects for the Hospital Information Systems segment will occur mostly in Germany, and for the Ambulatory Information Systems business segment in the USA, with the US transaction still being subject to regulatory approvals. The strong revenue growth will also be driven by significantly higher organic growth of more than +5 % in the 2021 fiscal year.

Adjusted EBITDA for the financial year 2021 is expected to remain at a similar level as in 2020. This corresponds to an EBITDA margin in a range of 20 to 23 %. The reduction in operating margin is attributable to planned additional investments in new technologies and distribution to realize numerous growth opportunities arising for CGM from the fast progressing digitization of the healthcare system. The Managing Directors and the Administrative Board want to use these opportunities to enable strong organic growth and an attractive EBITDA margin also in the years following. As planned, the full guidance for the financial year 2021 will be published in the standard format on February 4, 2021.

CompuGroup Medical also confirms the guidance for the financial year 2020 which was raised in August. For the current year 2020, CompuGroup Medical is still expecting a revenue increase to a range of EUR 820 million to EUR 860 million and an adjusted EBITDA between EUR 205 million and EUR 220 million.

Frank Gotthardt, founder and CEO, said, 'The rapidly progressing digitization in the healthcare sector is a blessing for humanity. This offers us great business opportunities and at the same time obliges us to seize them for the benefit of our customers, our employees and our shareholders. I am excited about the great growth opportunities for CGM. And I am delighted with the enthusiasm, skill and drive of our team in tackling the enormous challenges that lie ahead. I could not wish for a better setting to hand the leadership of this successful team over to Dr. Dirk Wössner and his colleagues on the Executive Board at the end of the year.'

Explanations of the alternative financial ratios used (Alternative Performance Measures (APM)) can be found on the website of CompuGroup Medical SE & Co. KGaA in the annual report of CompuGroup Medical SE & Co. KGaA on pages 28 and 44 here.

About CompuGroup Medical SE & Co. KGaA

CompuGroup Medical is one of the leading eHealth companies in the world. With a revenue base of EUR 746 million in 2019, 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 1.5 million users, including doctors, dentists, pharmacists and other health professionals in inpatient and outpatient facilities. With locations in 18 countries and products in 56 countries worldwide, CompuGroup Medical is the eHealth company with one of the highest coverages among eHealth service providers. Approximately 6,100 highly qualified employees support customers with innovative solutions for the steadily growing demands of the healthcare system.