TERTIARY healthcare services provider TalkMed Group : 5G3 0% on Tuesday (Feb 20) posted a 2.8 per cent drop in earnings to S$17.9 million for the second half ended Dec 31, 2023, from S$18.4 million in the corresponding year-ago period.

The dip was attributed to higher impairment loss, other operating expenses and employee benefit costs in H2 FY2023.

This translates to earnings per share (EPS) of S$0.0135, down from S$0.0139 year on year.

The group recorded a revenue uptick of 4.2 per cent on-year to S$46 million, from S$44.1 million in H2 FY2022, due to an increase in oncology revenue from higher management fees.

It also netted an increase in revenue from its subsidiary, CellVac, for cellular and gene therapy-related products and services. TalkMed has a 60 per cent stake in CellVac.

The group has declared a final dividend of S$0.013 per share for FY2023, to be paid out on May 10. This is lower than the final dividend of S$0.015 per share declared in FY2022.

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Together with an interim dividend of S$0.009 per share, the group’s total dividends for FY2023 will be S$0.022 a share.

For the full year ended Dec 31, 2023, TalkMed’s revenue was S$83.8 million, climbing 9.4 per cent from S$76.6 million in FY2022, also due to higher revenue from its oncology services. This was attributed to an increase in patient visits.

The full-year net profit of the healthcare services provider rose 5.3 per cent to S$32.2 million, from S$30.5 million.

The group said its oncology business experienced an improvement in patient numbers in 2023 as connectivity between Singapore and the region was restored to “close to pre-Covid-19 levels”.

However, the Cancer Drug List (CDL) introduced in 2022 has adversely affected local patient numbers, and is expected to continue doing so, TalkMed added.

CDL was implemented by the Singapore government to keep cancer treatments and insurance premiums affordable in the longer term, as patients would have to bear higher out-of-pocket payments for cancer treatments following changes in coverage by insurance companies.

The group also flagged that it faces growing competition in the region for medical tourists, due to a strong Singapore dollar, as well as nearby countries’ investments in healthcare infrastructure and expertise.

Shares of TalkMed closed flat at S$0.365 on Tuesday, before the results were announced.