SINGAPORE (April 29): Raffles Medical Group (RMG) has announced earnings of $13.65 million for the 1Q ended March, down 13.7% y-o-y from $15.8 million on start-up costs for Raffles Hospital Chongqing.
Revenue for the quarter grew 6.7% to $128.3 million from $120.2 million a year ago on higher contributions from the Healthcare Services and Hospital Services divisions, where revenue grew by 8.9% and 3.2% respectively.
The increase in revenue from Healthcare Services was contributed mainly by increase in premium from existing and new clients, Primary Care Network (PCN) Scheme and projects, while revenue from the Hospital Services division grew mainly due to the higher utilisation of in-patient capacities.
Due to start-up costs from Raffles Hospital Chongqing, staff costs grew 4.2% to $66 million while depreciation of property, plant and equipment widened to $6.2 million from a year ago.
Other operating expenses grew $8.2 million from $7.1 million in the previous year, resulting in profit from other operating activities falling 9.4% on-year to $17.1 million.
Excluding the gestation loss from Raffles Hospital Chongqing, which the group says is within expectations, RMG’s net profit after tax would have grown by 2.1% instead of the 11.2% decline from a year ago.
As at the end of the period, cash and cash equivalents stood at $111.8 million, up from $106 million a year ago.
RMG says it expects to grow its revenue and remain profitable in 2019, notwithstanding the expected gestation loss for Raffles Hospital Chongqing.
Shares in the group closed flat at $1.07 on Friday.
