KOBLENZ (dpa-AFX) - The software provider Compugroup, which specializes in medical practices and clinics, has recorded a significant drop in profits in the second quarter. Adjusted for special effects, earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 27 percent year-on-year to just under 53.6 million euros in the three months to the end of June, as the company, which is listed in the second-tier stock index SDax, announced on Monday. Net profit fell by more than half to 13.8 million euros. The main reason for this is a significant drop in turnover, which the company reported only last week. In this context, Compugroup also reduced its annual targets. The share price collapsed as a result and has not yet recovered significantly.

In the second quarter, turnover - as already known - slipped by 9 percent year-on-year to a good 277 million euros. Business with medical practices in particular was weaker. This was mainly due to one-off effects from the previous year. The division is also likely to record a loss for the year as a whole.

Overall, business in surgeries and hospitals is significantly weaker than previously expected, the Koblenz-based company reported last week. In addition, a second introduction phase of a government initiative in France is now not expected until 2025. 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.

For the year as a whole, revenue is likely to fall by up to two percent and, at best, remain stable. Compugroup is factoring out exchange rate effects as well as acquisitions and disposals of parts of the company. Previously, CEO Michael Rauch's plans had included a four to six percent increase in turnover.

Management expects earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for special effects to be between 220 and 250 million euros in 2024. Previously, the range had been 270 to 310 million euros./mis/men/jha/