KUALA LUMPUR (May 31): KPJ Healthcare Bhd's net profit for the first quarter ended March 31, 2019 (1QFY19) declined by 7.9% to RM39.13 million from RM42.48 million a year ago, weighed down by a RM2.07 million loss from its discontinued aged care business in Australia.

Earnings per share dipped to 0.93 sen, from one sen. The group declared an interim dividend of 0.5 sen per share, payable on June 28 this year.

In a filing with Bursa Malaysia, KPJ Healthcare shared that earnings from its continuing operation in Malaysia posted higher profit before tax, mainly due to higher revenue and the group's cost optimisation initiatives.

KPJ Healthcare's total revenue for the quarter under review rose 5.5% to RM868.13 million, from RM822.88 million in 1QFY18.

For the year 2019, the group acknowledged that rising cost in healthcare industry will continue to be the main challenge.

"With continuous monitoring over operational excellence and focus on revenue growth along with disciplined cost management, the group is confident to achieve its target and further its vision of becoming the preferred healthcare provider," it said.

According to KPJ Healthcare's annual report released in March this year, the group reiterated its intention to dispose of its interest in Australian aged care operations Jeta Gardens (Qld) Pty Ltd and its subsidiaries.

"Following a strategic review of the business model, the board of directors, during the year 2017, had approved the divestment of aged care operations in Australia by disposing [of] its shares in Jeta Gardens.

"The results of Jeta Gardens [were] disclosed as a discontinued operation and the relevant assets and liabilities were classified as being held for sale. The negotiations with potential buyer are still undergoing, and the transactions are expected to be completed this year," it said.

In January this year, The Edge Weekly, quoting sources, reported that KPJ Healthcare is in advanced talks to sell its stake in loss-making Jeta Gardens, pending the asset buyer raising the necessary financing for the purchase.

As at 4.38pm, the stock traded unchanged at 93 sen, giving it a market capitalisation of RM4.13 billion.