Friday 29 Mar 2024
By
main news image

This article first appeared in The Edge Financial Daily, on May 27, 2016.

KUALA LUMPUR: IHH Healthcare Bhd, Asia’s largest hospital operator by market capitalisation, reported a 37.3% rise in its net profit for the first financial quarter ended March 31, 2016 (1QFY16) to RM235.48 million or 2.86 sen a share, from RM171.48 million or 2.1 sen a share a year ago, which it attributed to a robust growth in revenue.

Its latest quarterly revenue came in at RM2.47 billion, 23.6% higher than the RM2 billion it saw in the same period a year ago, due to organic growth of existing operations at its hospitals across all the markets it is in, and the commencement of operations of Gleneagles Kota Kinabalu Hospital (opened in May 2015), Acibadem Taksim Hospital in Turkey (October 2015) and Gleneagles Medini Hospital (November 2015).

The acquisition of India’s Continental Hospitals (acquired in March 2015) and Global Hospitals (acquired in December 2015) also contributed to its 1QFY16 revenue.

The growth in revenue was, however, diluted by start-up losses from the new hospitals, as well as pre-opening expenses incurred to prepare Gleneagles Hong Kong for its opening next year, IHH noted in its bourse filing yesterday.

Parkway Pantai, the group’s largest operating subsidiary, reported a 30% improvement in revenue and 26% growth in earnings before interest, taxes, depreciation and amortisation (Ebitda) year-on-year.

This was mainly due to the continued ramp-up of Mount Elizabeth Novena in Singapore, contribution from the newly opened Gleneagles Kota Kinabalu Hospital and Gleneagles Medini Hospital in Malaysia, and the consolidation of results from its newly acquired Continental and Global Hospitals in India.

Acibadem Holdings, Turkey’s largest private healthcare provider by registered beds, reported a 14% growth in revenue and a 7% increase in Ebitda in its 1QFY16, on the continued ramp-up of Acibadem Atakent, contribution from newly opened Acibadem Taksim, as well as organic growth at existing hospitals and healthcare businesses.

ParkwayLife REIT, which had a portfolio of 47 healthcare-related properties as at March 31, 2016, reported a 36% gain in external revenue and a 21% rise in Ebitda.

IHH said it continues to believe in the robust demand for quality private healthcare in its home and growth markets, especially in China and India.

“The group is confident that its strong brands and network of hospitals, backed by its strong balance sheet and operating cash flows, will enable it to successfully navigate the challenging operating environment expected for the rest of the year,” it said.

IHH shares were down three sen or 0.5% yesterday at RM6.52, valuing it at RM53.65 billion.

      Print
      Text Size
      Share