SINGAPORE (Feb 11): Health Management International (HMI) recorded a 28% drop in it 2Q19 earnings to RM11.3 million ($3.76 million), compared to RM15.7 million in 2Q18.
This brings 1H19 earnings to RM21.9 million, 26% lower than RM29.5 million in 1H18.
During the quarter, turnover was 11% higher at RM128.6 million from RM116.0 million a year ago, mainly attributable to higher contribution from the group’s healthcare business, which increased due to higher patient load and average bill sizes in its two hospitals – Mahkota Medical (MMC) and Regency Specialist Hospital (RSH).
The increase in revenue was partially offset by lower contribution from the group’s education business due to lower student headcount.
As cost of services increased by 13% y-o-y to RM82.4 million, gross profit for 2Q19 came in at RM46.2 million, 8% higher than RM42.8 million last year.
In 2Q19, the group recorded other losses of RM1.68 million, compared to other gains of RM0.86 million in 2Q18, mainly due to the weakening MYR, which resulted in foreign exchange losses.
Distribution and marketing costs also more than doubled to RM1.79 million from RM0.85 million in the previous year, due to increased marketing and branding efforts.
Administrative cost was 34% higher y-o-y at RM24.3 million, due to administrative expenses incurred by StarMed Specialist Centre (SSC), higher general operating costs in the group entities and higher share-based payment expenses.
As at end Dec, the group’s cash and cash equivalents stood at RM82.2 million.
The group has declared an interim dividend of 1 sen per share.
Shares in HMI closed at 54 cents on Monday.
