KOBLENZ (dpa-AFX) - The software provider Compugroup, which specializes in medical practices and clinics, is lowering its forecasts for the year after a weak second quarter. Business in surgeries and hospitals is significantly weaker than previously expected, as the SDax company from Koblenz announced on Tuesday. In addition, a second introduction phase of a government initiative in France is now not expected until next year, it said. In Germany, too, projects in connection with the Hospital Future Act are not progressing as quickly as hoped. In addition, higher investments are weighing on business, including for artificial intelligence.

The share price initially fell by almost 30 percent, its lowest level since mid-2013. Compugroup was last quoted almost 28 percent lower at 17.26 euros.

For the year as a whole, revenue is likely to fall by up to two percent and at best only remain stable, the press release continued. Compugroup is factoring out exchange rate effects as well as acquisitions and disposals of parts of the company. Previously, the plans of CEO Michael Rauch included a plus of four to six percent. Management now expects earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for special effects to be between 220 and 250 million euros. Previously, the range had been between 270 and 310 million euros. On average, analysts surveyed by Bloomberg had recently expected sales growth and an operating result of 271 million euros.

In the second quarter, turnover slipped by 9 percent year-on-year to 277 million euros, according to preliminary figures. Business with medical practices (AIS) in particular was weaker. This was mainly due to one-off effects in the same period of the previous year. The division is also likely to record a loss for the year as a whole./men/jsl/he