SINGAPORE (April 24): Raffles Medical Group posted relatively flat 1Q earnings of $15.5 million, just 0.1% higher than a year ago.
Revenue for the 1Q17 ended March, fell 1.7% to $114.9 million. Raffles Medical says the marginal decline was due to softer than expected demand from foreign patients. Healthcare and Hospital Services divisions recorded a revenue decrease of 2.0% and 1.9% respectively.
Despite lower revenue, the group says it was able to contain costs and maintain its profitability. In addition, the group’s profitability was affected by the lower wage credit received in 1Q17 of $0.7 million as compared to $1.9 million in 1Q16. Excluding the
wage credit received, the group’s operating profit would have grown by 3.8%.
In 1Q17, the group maintained a cashflow from operating activities of $18.2 million. The
group has a positive net cash position of $119.4 million as at end March.
Looking ahead, Raffles Medical says demand for healthcare services may be affected by the economic slowdown in Singapore and the region, as well as increased competition from regional countries for foreign patients.
However, the group says it will continue to be vigilant and respond to new opportunities and challenges that may arise.
Shares of Raffles Medical closed 1 cent lower at $1.42.
