Thomson Medical Group A50 has reported earnings of $22.8 million for the 1HFY2023 ended Dec 31, 2022, 82.6% higher than the earnings of $12.5 million in the same period the year before.
Earnings per share (EPS) rose to 8.6 cents from the previous period’s 4.7 cents on a fully diluted basis.
Revenue for the six-month period increased by 26.6% y-o-y to $184.0 million as revenue from both the hospital and specialised services segments increased. The hospital segment saw revenue grow by 15% y-o-y to $91.3 million while revenue for the specialised services segment grew by 41% y-o-y to $92.5 million.
The higher revenues from both segments came from the overall increase in patient loads and higher average bill sizes. In Singapore, the group also saw revenue contribution from the income received from project-related services such as managing the vaccination centres and the Transitional Care Facilities (TCFs). Revenue for the group’s Singapore business grew by 28% y-o-y to $139.0 million. In Malaysia, the revenue was mainly due to the higher patient loads and higher case intensity handled. This is also partly attributed to the increased operating capacity at Thomson Hospital Kota Damansara. The group’s revenue from Malaysia grew by 23% y-o-y to $45.0 million.
The group’s 1HFY2023 ebitda also saw an increase of 40.6% y-o-y to $55.5 million, on the back of higher revenue growth.
Manpower costs for the group rose by 27% y-o-y to $62.6 million in the 1HFY2023 partly due to the higher headcount for the new wing at Thomson Hospital Kota Damansara. The higher costs were also attributed to higher salary expectations on the back of a competitive market.
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Other operating expenses rose 11% to $38.6 million. This is due to an increase in professional fees, higher utility costs and the development of Thomson Hospital Kota Damansara’s new wing
Other income fell by 52.8% y-o-y to $2.3 million due to the lower government grants received.
Results from operating activities increased by 46.4% y-o-y to $45.2 million.
During the 1HFY2023, the group reported a share of loss of a joint venture of $286,000.
Profit for the period surged by 74% y-o-y to $24.3 million.
As at Dec 31, 2022, cash and cash equivalents stood at $143.4 million.
No dividend has been declared for the period.
“Growth in the Southeast Asian healthcare sector presents many new opportunities for the group to scale up; Thomson Medical Group is well positioned to transform into a regional healthcare platform providing a comprehensive suite of services through both organic and inorganic expansion,” says Kiat Lim, Thomson Medical Group’s vice chairman and executive director.
“With the easing of travel and community restrictions towards the end of 2022, we have seen a surge in demand for healthcare services due to an increased emphasis on personal health. Also, elective procedures which were deferred during the pandemic are now being performed. We expect this trend to continue into 2023,” adds Dr Melvin Heng, the group’s executive director and group CEO.
“Whilst we tackle issues of manpower scarcity and higher operating costs, our commitment to invest in digital capabilities and drive process efficiency will help us provide smooth and cost-efficient services to our patients,” he continues.
Shares in Thomson Medical closed flat at 7.2 cents on Feb 10.
