• Revenue up 7.0 percent at constant currency
  • IMS Health 200Adjusted EBITDA up 9.8 percent at constant currency
  • Adjusted Net Income up 116 percent at constant currency
  • Adjusted Diluted Earnings per Share was $0.39, up 15 cents

Revenue for the first quarter was up 7.0 percent on a constant currency basis, down 2.0 percent on a reported basis, to $632 million, compared with the first quarter of 2014 as the dollar continued to strengthen.  The company’s strong revenue performance in the first quarter was driven by a 12.7 percent increase in technology services revenue on a constant currency basis, up 5.3 percent on a reported basis. Information offerings revenue was up 3.0 percent on a constant currency basis, down 7.0 percent reported. Revenue grew across all geographic regions at constant currency. Emerging markets revenue increased 11.2 percent on a constant currency basis, decreasing 2.9 percent on a reported basis. Developed markets revenue grew 6.1 percent on a constant currency basis, down 1.8 percent reported, versus the same period last year.

Adjusted EBITDA improved 9.8 percent on a constant currency basis, down 0.5 percent reported, to $216 million, compared with the first quarter of 2014. This improvement reflected both the drop-through from revenue growth to Adjusted EBITDA and the impact of continued cost-reduction initiatives. Adjusted EBITDA as a percentage of revenue for the quarter improved by 87 basis points on a constant currency basis, or 49 basis points on a reported basis to 34.2 percent.

“We are pleased to report yet another quarter of strong operating performance, with our technology services offerings again growing double digits at constant currency,” said Ari Bousbib, chairman and CEO, IMS Health. “Important contract wins during the quarter position us well to continue this momentum.”

First-quarter 2015 net income was $298 million compared with a net loss of $24 million in last year’s first quarter, which included higher equity compensation expense and other one-time expenses related to the IPO.

2015 Full-Year Guidance

IMS Health reaffirms full-year 2015 constant currency guidance. The company expects core IMS Health (excluding the impact of the acquisition of Cegedim’s CRM and Strategic Data businesses) to have full-year 2015 constant currency growth of 5 to 6 percent in revenue, 7.5 to 8.5 percent in Adjusted EBITDA, 16 to 19 percent in Adjusted Net Income, and 11 to 14 percent in Adjusted Diluted Earnings per Share. Including the acquisition of Cegedim’s CRM and Strategic Data businesses (Combined business), IMS Health expects to have full-year 2015 constant currency growth of 19 to 20 percent in revenue, 13 to 14 percent in Adjusted EBITDA, 20 to 23 percent in Adjusted Net Income, and 15 to 18 percent in Adjusted Diluted Earnings per Share.

Solely due to the strengthening of the U.S. Dollar, the company is revising full-year reported revenue growth to approximately 10 percent and Adjusted EBITDA growth to approximately 4 percent for the Combined business. However, assuming current foreign exchange rates hold constant through the end of the year, IMS Health is maintaining full-year reported guidance for Adjusted Net Income growth of 8 to 11 percent and Adjusted Diluted Earnings per Share growth of 4 to 6 percent for the Combined business.

Source: Businesswire.com