CompuGroup Medical Revises 2024 Revenue Forecast Due to Lower AIS and HIS Segment Performance

CompuGroup Medical SE & Co. KGaA (CGM) has adjusted its revenue forecast for the financial year 2024, citing lower-than-expected revenues. The preliminary consolidation of second-quarter revenues and an updated full-year forecast contributed to this revision.

The decrease in revenue expectations is mainly due to significantly lower non-recurring revenues, particularly in the Ambulatory Information Systems (AIS) and Hospital Information Systems (HIS) segments. In the AIS segment, a slowdown in additional module sales and professional services was noted. Additionally, the anticipated start date for the second wave of the Ségur government initiative in France has been delayed to 2025. In the HIS segment, the slower realization of projects related to the Hospital Future Act has also impacted revenue growth.

Preliminary group revenues for the second quarter amounted to EUR 277 million, reflecting a 9% year-on-year decline. The organic revenue development showed a drop of 15% in AIS, a 2% increase in HIS, and a 1% decrease in Primary Care Systems (PCS).

Following the updated forecast, CGM now expects organic revenue to develop between -2% and 0% for 2024, down from the previous expectation of +4% to +6%. The AIS segment is anticipated to see a low- to mid-single-digit percentage decrease in revenue, while the HIS segment is expected to grow by a low- to mid-single-digit rate, and the PCS segment is projected to grow as previously forecasted.

The adjusted EBITDA forecast has also been revised to EUR 220 million to EUR 250 million, down from the previous range of EUR 270 million to EUR 310 million, due to increased investments in AI and data-based and patient-centered solutions.