SINGAPORE (Nov 29): IHH Healthcare posted earnings of RM236.3 million ($77.3 million) for 3QFY2019 ended September, reversing from losses of RM104.1 million a year ago.
However, excluding exceptional items, IHH’s earnings would have been RM202.3 million in 3QFY2019, some 35% lower than earnings of RM309.0 million in 3QFY2018.
The decline was due to higher interest expense as additional loans were taken for the Fortis acquisition, working capital and swapping of Acibadem’s non-Lira loans to Lira loans upon refinancing and the adoption of a new accounting standard.
3QFY2019 revenue rose 33% to RM3.79 billion, as a result of sustained organic growth from existing operations and the ramp up of Gleneagles Hong Kong Hospital and Acibadem Altunizade Hospital, which were both opened in March 2017.
The higher revenue was also due to contribution from the increased capacity at Acibadem Maslak Hospital, the acquisition of Amanjaya in October 2018, and the acquisition of Fortis in November 2018.
In 3QFY2019, Parkway Pantai’s revenue increased 52% to RM2.77 billion, Acibadem Holdings’ revenue decreased 1% to RM913.6 million.
As at end-September, cash and cash equivalents stood at RM2.60 billion.
“Our dedicated focus on working towards our vision of becoming the world’s most trusted healthcare network underpinned another strong set of financial results for 3QFY2019, as we prioritised operational synergies and integration,” says Dr Kelvin Loh, IHH’s CEO designate and executive director.
Looking ahead, IHH says it will focus on ramping up its existing operations while opening new operations in phases to achieve optimal operating leverage.
The group adds that it expects to mitigate the potential higher costs of operations, including from impending price controls, through improvements in case mix and tight cost control. It also intends to increasingly leverage technology to increase its productivity and service offerings.
Shares in IHH closed 2 cents lower, or down 1.1%, at $1.73 on Friday.
