We are confident in the future of eRx in Germany and our digital health strategy, focusing on customer acquisition and retention. TeleClinic has also seen significant growth, doubling its sales in the first half of 2024 and reaching breakeven in the last quarter of 2023. We are on track for profitable growth and anticipate a positive cash flow through strategic investments in eRx, OTC, and TeleClinic.
In terms of financials, we reported a solid cash position of CHF195 million and achieved EBITDA breakeven in the base business. Our OTC business in Germany drove revenue growth, while Rx revenue decreased due to the transition from paper prescriptions to electronic prescriptions. Despite challenges in the Rx sector, we remain optimistic about the gradual improvement in the coming years.
Looking ahead, we expect external revenue growth of 5% to 10% in 2024, with adjusted EBITDA around -CHF50 million. We plan to focus on new customer acquisition in prescription drugs, targeting chronic patients. We aim for free cash flow breakeven 12 to 18 months after EBITDA breakeven.
Overall, we are confident in our ability to achieve profitable growth and positive cash flow by scaling eRx and leveraging our OTC and TeleClinic businesses. We have a positive outlook for the future and remain committed to our strategic goals in the digital healthcare landscape in Germany. Thank you for your attention, and we will now open the floor for questions. The results were very positive, and we were able to identify the most effective strategies to attract new customers. Overall, the marketing campaign with the Gesundbergs has been a great success and has significantly contributed to the growth of our eRx business.
In conclusion, we are very pleased with the progress we have made with eRx in Germany. The positive developments in customer acquisition, revenue growth, and profitability are very encouraging, and we are confident that we are on the right track towards achieving profitable growth and positive cash flow. With the support of the new digital laws and the upcoming changes in doctors’ remuneration, we believe that the future of eRx in Germany is bright. Thank you for your attention, and I am happy to take any questions you may have.” Overall, the financial update for H1 2024 shows positive growth and improvements in key areas such as revenue, EBITDA, and customer acquisition. The focus on efficiency and cost management has resulted in a stable gross margin and improved gross profit. The strategic investments in new customer acquisition, particularly in the eRx business, are expected to yield positive results in the future. The continued growth in active customers and site visits demonstrates a strong foundation for future sales growth. The overall financial performance in H1 2024 is in line with expectations and supports the company’s goals for profitability and sustainability. Urs Kunz: Understood, thank you for the clarification. And just one last question regarding the debt maturity profile. Could you provide more details on the new convertible bond issue and the repurchase of the existing one? And how does this impact the company’s financial position moving forward?
Marcel Ziwica: Certainly. The new convertible bond issue was a strategic move to improve our debt maturity profile. By issuing a new convertible bond with a duration until 2029, we were able to refinance the existing one and extend the maturity. This allows us more flexibility in managing our debt obligations and reduces refinancing risks in the short to medium term. The simultaneous repurchase of the existing bond also helped optimize our capital structure and reduce interest payments. Overall, this has strengthened our financial position and will support our growth initiatives in the coming years. We have been monitoring the performance closely and adjusting our strategy accordingly. We are confident in our customer acquisition and retention metrics and believe that our current approach is the right one for sustainable growth.
Regarding TeleClinic, we are pleased with its performance and growth. We are focused on providing high-quality telemedicine services and building a strong customer base. We are constantly evaluating opportunities for growth and profitability and will continue to adapt our strategy as needed. We are committed to balancing growth with profitability and will make decisions based on what is best for the business in the long term. So we are confident that we will be able to reach our operational EBITDA breakeven and long-term targets even if the Rx gross margin comes in lower than expected. Our strong KPIs and profitability from the electronic prescription business support this confidence. Y así, por supuesto, ajustaremos eso día a día, cómo invertimos en marketing y calculamos que realmente valga la pena. Olivier Calvet: Bueno. Muchas gracias. Walter Hess: Gracias. Operador: [Instrucciones del operador]. Y la próxima pregunta viene de Yannik Siering, Stifel. Por favor, continúe. Yannik Siering: Gracias. Buenos días. Solo una pregunta más y es sobre su perspectiva revisada. Mencionaron la inflación de costos de materiales y logística como un obstáculo y también escasez de medicamentos con receta. ¿Podrían ampliar un poco sobre los impulsores y cómo esto ha cambiado en comparación con marzo? Y tal vez también sobre la escasez, qué tan significativa es y, sí, en qué medida le impide crecer de manera más dinámica. Gracias. Marcel Ziwica: No hay cambios en el anuncio anterior. Simplemente mostramos cuáles son los obstáculos y cuáles son los impulsores. Y, por supuesto, tenemos inflación en varios temas de costos. Pero por otro lado, también podemos trasladar esto hacia nuestros precios de venta. Así que no hay problemas o solo un impacto mínimo que vemos en este sentido. Yannik Siering: Vale. Gracias. Operador: Bien. Como no hay más preguntas en este momento, me gustaría devolverlo a los oradores para algunas observaciones finales. Walter Hess: Sí. Bien. Gracias. Antes de llegar al final de esta llamada, me gustaría agradecer personalmente a Marcel porque esta fue su última conferencia telefónica para analistas y medios en DocMorris. Estamos agradecidos por sus casi 25 años de servicio dedicado. Haciendo crecer a DocMorris desde una pequeña empresa a través de la IPO hasta ahora. Para mí personalmente, Marcel fue un gran apoyo y me ayudó desde que asumí las funciones de CEO hace unos dos años. Le deseo todo lo mejor para el futuro y espero que las preguntas más desafiantes en el futuro no provengan de él como inversor en DocMorris. Y con esto, llegamos al final. Muchas gracias por su tiempo y atención.