IHH Healthcare Q3 earnings up 61% to RM117m
KUALA LUMPUR: IHH Healthcare Bhd’s earnings rose 61% to RM117.03mil in the third quarter ended Sept 30, 2013 from RM72.62mil a year ago, underpinned by strong growth from the current and new hospitals.
It said on Tuesday its revenue increased by 13% to RM1.671bil from RM1.484bil while earnings per share were 1.44 sen compared 0.95 sen.
“Profit after tax and minority interests (PATMI), excluding exceptional items, increased 63% on-year to RM138.3mil, driven by growth in earnings before interest, taxes, depreciation and amortisation (EBITDA) as well as savings in finance costs,” it said.
IHH Healthcare said EBITDA rose 30% on-year to RM393.90mil from RM303.0mil due to continued strong earnings from its existing hospitals and the ramping up of new hospitals.
It said the Acibadem Bodrum Hospital, which started operating in June 2012 turned EBITDA positive in Q3, 2013 due to higher patient volumes during the summer months.
Mount Elizabeth Novena Hospital, which also opened in June 2012, and Acibadem Ankara Hospital, which opened in November 2012, contributed positively to the group’s EBITDA in the quarter.
IHH Healthcare said when compared with the previous quarter ended June 30, 2013, the EBITDA for Q3, 2013 fell 6% while PATMI excluding exceptional items fell 27% on rising cost pressures.
The Q2, 2013 PATMI was boosted by a one-off RM22mil tax credit relating to a prior year’s tax.
For the nine months ended Sept 30, 2013, its earnings fell 32.5% to RM401.06mil from RM594.29mil in the previous corresponding period. Revenue declined 8.4% to RM4.976bil from RM5.434bil.
“The group’s year-to-date 2013 PATMI excluding exceptional items and the recognition of sale of medical suites, increased 45% to RM460.4mil compared to the same period a year ago.
“Excluding the recognition of the sale of medical suites, the group’s revenue increased by 18% and EBITDA was up 24%.
“The strong performance was driven by organic growth of existing operations, ramping up of new hospitals as well as the full nine months consolidation of Acibadem Holdings performance in YTD 2013, compared to only eight months consolidation in YTD 2012 after the group acquired Acibadem Holdings on Jan 24, 2012,” it said.