SINGAPORE (May 9): Health Management International (HMI) posted earnings of 15.9 million ringgit ($5.4 million) for the 3Q ended March, swinging out of a net loss of 1.6 million ringgit a year ago.
Excluding non-operational and one-off items, core earnings would have more than doubled to 15.4 million ringgit in 3Q18, from 7.1 million ringgit a year ago.
3Q18 revenue grew 7.1% to 115.4 million ringgit, from 107.7 million ringgit a year ago, on the back of rising patient loads and average bill sizes at Mahkota Medical Centre and Regency Specialist Hospital.
Gross profit grew 20.5% to 41.4 million ringgit during the quarter, led by higher revenue intensity and effective cost management.
Administrative costs fell 26% to 18.5 million ringgit in 3Q18, due to the absence of 7.3 million ringgit in professional fees and other costs related to the consolidation reported last year.
As at end March, cash and cash equivalents stood at 69.2 million ringgit.
“Overall, we are in growth mode, recruiting new specialists and expanding capacity at both hospitals. Backed by a strong balance sheet, the group is also exploring partnerships and strategic acquisitions to further enhance clinical excellence and expand geographically,” says Chin Wei Jia, HMI’s chief executive officer.
“In line with marketing initiatives geared towards capturing a bigger medical tourism market share, the growth in our foreign patient load continues to outpace the growth in local patient load. Leveraging on our network of 16 patient referral offices across Indonesia, Malaysia and Singapore coupled with the longstanding reputation of our hospitals, we remain poised to capture the favourable demographics and rising demand for private healthcare,” she adds.
Shares of HMI closed half a cent lower at 67 cents on Wednesday.
