CompuGroup Medical SE & Co. KGaA expects lower revenues and therefore revises its financial year 2024 guidance

At CompuGroup Medical SE & Co. KGaA (“CGM”), the preliminary consolidation of revenues for the second quarter and an updated full year forecast result in lower expected revenues than originally anticipated for the financial year 2024.

The reason for the revenue deviation lies in significantly lower non-recurring revenues, particularly in the AIS segment and parts of the HIS segment. In the AIS segment, there is a slowdown in additional module sales and professional services in connection with larger projects. In addition, the second wave of the government initiative Ségur in France is now expected to start in 2025 instead of 2024. In the HIS segment, the slower realization of projects in connection with the Hospital Future Act (“Krankenhauszukunftsgesetz”) leads to a lower organic revenue growth rate.

Preliminary group revenues for the second quarter amounted to EUR 277 million (circa -9% reported and organic year-on-year, mainly due to one-time effects in the AIS segment in the prior year quarter). The second quarter organic revenue development showed circa -15% in AIS (mainly due to one-time effects in the prior year quarter), +2% in HIS, and -1% in PCS year-on-year.

Based on the preliminary consolidation of Q2 revenues and on the updated financial year forecast, CGM revises its full year guidance for the revenue development in 2024. CGM now expects an organic revenue development in a range between -2% and 0% (previously +4% to +6%). CGM now expects the organic revenues in the AIS segment to decrease by a low- to mid single-digit percentage rate (previously low to mid single-digit increase), for the HIS segment to grow by a low to mid single digit percentage rate (previously mid to high single-digit increase) and for the PCS segment to grow unchanged by a low to mid single-digit percentage rate.

Based on the updated forecast and on increased investments, particularly into AI, data-based and patient-centered solutions, CGM also revises its guidance for the adjusted EBITDA (as defined in CGM’s annual report for the financial year 2023 on page 45). CGM now expects the adjusted EBITDA for the financial year 2024 to be in a range of EUR 220 million to EUR 250 million (previously EUR 270 million to EUR 310 million).

The complete financial statements for the first half year will be published as planned on August 8, 2024.