SINGAPORE (Aug 23): IHH Healthcare Berhad, the global healthcare provider, reported 2Q earnings grew 29% to RM316.6 million ($100.8 million) from RM246.1 million a year ago.
This follows a RM241.1 million one-off gain from the group’s divestment of its non-core minority stake in Apollo Hospitals in May.
Less exceptional items, 2Q earnings would have fallen 54% to RM86.2 million.
For the three months ended June 30, revenue increased 12% year-on-year to RM2.8 billion. This was due to sustained growth in inpatient admissions and revenue intensity across all home markets and the ramp up of new hospitals opened in March 2017. Tokuda Group and City Clinic Group in Bulgaria, acquired in June 2016 and since consolidated into Acibadem, also contributed to the increase in revenue.
Earnings before interest, tax, depreciation, amortisation, exchange differences and other non-operational items (EBITDA) declined 3% to RM535.8 million. This was mainly on the back of startup costs incurred by the newly opened Gleneagles Hong Kong Hospital and Acibadem Altunizade Hospital, as well as higher operating and staff costs.
In June this year, IHH broke ground for Gleneagles Shanghai Hospital. In July, Parkway Pantai acquired a 55% equity interest in Angsana Holdings for a total consideration of $9.3 million.
Dr Tan See Leng, IHH Managing Director and CEO, says: “We delivered topline growth across all markets despite a challenging operating environment by keeping a relentless focus on core operations while actively rebalancing assets in our portfolio. We are pleased that our two newest hospitals, which will be growth drivers as they ramp up, are already contributing to revenue. We look forward to our next phase of growth, especially in Greater China, where we have laid out plans to make it our fifth home market after Malaysia, Singapore, Turkey and India.”
Shares in IHH closed 0.5 cent lower at $1.895 on Wednesday.
