KUALA LUMPUR (Aug 23): IHH Healthcare Bhd saw its net profit increase 29% to RM316.56 million or 3.84 sen per share for the second quarter ended June 30, 2017 (2QFY17), from RM246.09 million or 2.99 sen per share for the previous year's corresponding quarter, helped by a one-off gain.

Revenue for the quarter rose 12% to RM2.77 billion from RM2.47 billion a year earlier.

In a statement, IHH said it realised a one-off gain of RM241.1 million during the quarter from the divestment of its non-core minority stake in Apollo Hospitals in May.

Excluding the exceptional items, the group said its core net profit dropped 54% to RM86.2 million due to higher depreciation, amortisation and finance costs following the opening of two new hospitals in Hong Kong and Istanbul in March.

Meanwhile, revenue growth for the quarter was attributed to sustained growth in inpatient admissions and revenue contribution across all home markets and the ramp-up of the new hospitals.

For the first half of its financial year (1HFY17), net profit jumped 63% to RM786.61 million from RM481.57 million in 1HFY16, while cumulative revenue rose 10% to RM5.46 billion from RM4.95 billion.

Meanwhile, it said core net profit for 1HFY17 fell 32% year-on-year to RM288 million.

"We delivered topline growth across all markets despite a challenging operating environment by keeping a relentless focus on core operations while actively rebalancing assets in our portfolio.

"We are pleased that our two newest hospitals, which will be growth drivers as they ramp up, are already contributing to revenue," said IHH managing director and chief executive officer Dr Tan See Leng.

Tan added that the group looks forward to its next phase of growth, especially in Greater China, which will be IHH's fifth home market after Malaysia, Singapore, Turkey and India.

The group expects to face cost pressures going forward, due to wage inflation, rising purchasing costs as the US dollar strengthens and higher pre-operating and start-up costs from its new operations.

IHH said it will remain prudent in its cost management, improve the mix of higher revenue intensity cases and ramp up new facilities to achieve optimal operating efficiencies.

IHH fell 3 sen or 0.5% to close at RM6, giving it a market capitalisation of RM49.43 billion.