SINGAPORE (May 10): Healthway Medical Corporation swung back into the black in 1Q18, recording earnings of $0.12 million, compared to a loss of $0.50 million in 1Q17 and a loss of $28.8 million in 4Q17.
Revenue during the quarter was 23.7% higher at $28.7 million, compared to $23.2 million a year ago, mainly due to the increase in revenue of $2.4 million in the Primary Healthcare segment, as well as $3.1 million in the Specialist & Wellness Healthcare segment.
The increase in the group’s turnover for both Primary Healthcare segment and Specialist & Wellness Healthcare segment is largely attributable to revenue from clinics owned by Healthway Medical Enterprise (HME), which was acquired by the group during 2Q17.
Other income increased by 59.8% to $0.97 million from $0.60 million last year, due to higher government employment grant and gain on disposal of fixed assets.
Total operating costs in 1Q18 of $29.5 million was 27.2% higher than $23.2 million in 1Q17, mainly attributable to increase in medical supplies, consumables and laboratory expenses, higher staff costs, other operating costs, depreciation expenses, as well as costs incurred for clinics owned by HME.
Finance costs dropped 97.7% to $0.02 million compared to $0.77 million in the previous year, mainly due to repayment of borrowings during FY17.
As part of its business optimisation strategy, the group has committed to reviewing the performance of its business units and rebalancing its network of clinics to continually improve operational efficacy.
The group has taken definitive measures that included the expansion or consolidation of certain Primary healthcare and/or Specialist and Wellness business units. It is also undergoing a rebranding exercise, which aims to reinforce the Group's strengths and priorities among both internal and external stakeholders, including staff, customers and partners.
The optimisation strategy to enhance operations, together with the rebranding exercise, is expected to anchor the group's transformation efforts.
Shares in Healthway Medical closed at 4.8 cents on Thursday.
