SINGAPORE (July 31): Raffles Medical Group (RMG) has announced earnings of $16.8 million for the second quarter ended June, up half a percent from $16.7 million reported in the same period a year ago.
An interim dividend of half a cent has been declared, to be paid on Aug 31.
Revenue for 2Q17 was 1% higher at $120.1 million as compared to $119 million in the previous year despite softer-than-expected demand from foreign patients, which the group attributes to a growth in patient load that boosted revenue from the hospital services division by 0.3% – offsetting a marginal decrease in revenue from the healthcare services division by 1.1%.
Staff costs grew 3% to $61.7 million from $59.9 million a year ago, due mainly to the recruitment of more specialist consultants, management and clinical staff in preparation for the opening of RafflesHospital Extension in the last quarter of this year.
As at end-June, the group was at a cash position of $112 million after accounting for its distribution of a final dividend of $5.5 million, and payment of $53.6 million for investment properties under development.
In its regulatory filing on Monday, RMG says RafflesMedical acquired new clients for the group in the property, shipping, commodity, hospitality, education, childcare, finance, services and government sectors over the quarter.
According to the group, RafflesHospital Extension’s completion and opening in Q4 2017 will allow RafflesHospital to further increase its breadth and depth of clinical services with projected concurrent expansion in the capacity of specialist outpatient and inpatient facilities.
It adds that the construction of its expansion projects RafflesHospital Chongqing and RafflesHospital Shanghai, which are targeted to be operational by 2H18 and 2H19, is progressing according to plan.
“Despite the economic slowdown and increasing competition from regional countries for foreign patients, the group is prepared and ready to meet these challenging conditions. The group will also continue to be vigilant and respond to new opportunities that may arise,” comments RMG.
The group expects to remain profitable in FY17.
Shares of RMG closed 1 cent lower at $1.28 on Friday.
