CompuGroup Medical Societas Europaea : grows in third quarter 2019 in all segments, guidance confirmed

• Group revenues +7% to EUR 178 million
• Recurring revenues +11%, share of total revenue rises to 66%
• EBITDA +24% to EUR 43 million
• EPS +9% to EUR 0.37

CompuGroup Medical SE, one of the leading providers of eHealth solutions, looks back on a successful third quarter of 2019: In the third quarter, group revenues rose by 7 percent to EUR 178 million, and group earnings before interest, taxes, depreciation and amortization (EBITDA) by 24 percent to EUR 43 million. EBITDA included effects from first-time application of the accounting standards IFRS 16 amounting to EUR 4.3 million. Earnings per share of EUR 0.37 in the third quarter were up 9 percent on previous year's figure, while cash net income per share of EUR 0.51 was up 6 percent. Due to one-off effects (cash settlement for stock options of a former member of the Management Board and M&A transaction costs), cash flow from operating activities amounted to EUR -6.5 million after EUR 26 million in the previous year. Adjusting for these one-off effects, pro forma operating cash flow amounted to EUR 17.5 million. Guidance for the full year 2019 is confirmed for revenues in the range of EUR 720 to 750 million and for EBITDA in range of EUR 175 to 190 million (including costs for the M&A transaction abandoned on September 15).

'The double-digit growth in recurring revenues, which accounts for two-thirds of the group revenue, is a strong signal of the sustainable sales and earnings power of our company,' says Michael Rauch, CFO of CompuGroup Medical SE.

In the largest segment, Ambulatory Information Systems (AIS), CompuGroup Medical SE achieved revenues of EUR 112 million, an increase of 5 percent. Recurring revenue in this segment rose by 12 percent to EUR 81.2 million, due in part to the solid growth in telematics infrastructure (TI) services. In September, CGM submitted its eHealth connector KoCoBox Med+ to gematik for approval, which will enable medical applications in the TI in future. Without the special effect of the TI rollout, which has now largely been completed, organic sales growth of 11 percent would result, mainly due to the good development in the German dental business, the laboratory business in the USA, and the rollout of the Electronic Health Record (ELGA) in Austria.

The Hospital Information Systems (HIS) segment also recorded a strong organic growth of revenue of 12%, driven by good business development in the German hospital business, especially in the rehabilitation sector, and very good growth in Austria. The positive development was supported by revenues from the major contract concluded in the second quarter with the Niederösterreichische Landeskliniken-Holding for the introduction of the hospital information system CGM CLINICAL. At 6 percent, the Pharmacy Information Systems (PCS) segment also posted good growth.

The Health Connectivity Services (HCS) segment also grew: With revenues of EUR 11.6 million, this segment is 29 percent higher than in previous year's quarter. 'This development underlines the increasing importance of connectivity in healthcare,' comments Frank Gotthardt, Chairman and CEO of CompuGroup Medical SE. 'By creating the executive board segment 'Consumer and Health Management Information Systems,' we will in future attach even greater importance to the target group of end consumers and connectivity projects. We want to ensure that even more people benefit from the digital transformation in healthcare in the future. With Dr. Eckart Pech we have found an experienced manager for this important segment.'

Gotthardt is also positive about developments in the other market segments: 'The strong result in the HIS segment shows us that our international hospital information system CGM CLINICAL has been very well received by the market two and a half years after its launch. At the same time, the organic growth in the AIS and PCS segments underscores the fact that digital transformation is also becoming more and more popular in doctors' offices and pharmacies. CompuGroup Medical's long-term investments are thus paying off - also and above all in favor of the patients.'

The complete quarterly report is available on the company's website www.cgm.com under Investor Relations .