IHH Healthcare posts net profit of RM236.3m, reversing from loss

Global healthcare provider IHH Healthcare posted a net profit of RM236.3 million (S$77.37 million) for the third quarter to September, reversing from a loss of RM104 million a year ago, as a result of contribution from recently acquired hospitals, ramped up operations and increased capacity.

Correspondingly, earnings per share stood at 2.44 sen for the quarter, versus a loss per share of 1.53 sen.

Revenue increased by 33 per cent to RM 3.78 billion from RM 2.84 billion, announced IHH Healthcare in a regulatory filing on Friday after market closed.

It attributed its revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) improvement to "the sustained organic growth from existing operations and the continuous ramp up of Gleneagles Hong Kong Hospital and Acibadem Altunizade Hospital (both opened in March 2017), as well as contribution from the increased capacity at Acibadem Maslak Hospital (expansion completed in Oct 2018). The acquisition of Amanjaya in October 2018, and Fortis in November 2018 also contributed to the increase.

IHH Healthcare did not declare a dividend for the quarter.

Its nine-month earnings came in at RM510.8 million, a marked improvement over RM118.3 million for the year-ago period. Revenue for this period was RM11.08 billion or 33 per cent higher than the RM8.36 billion registered a year ago.

On Hong Kong's protests, the impact on its services has overall been "limited" and operations have remained "stable" so far, but it flagged that a prolong fallout may dampen the ramp up of Gleneagles Hospital Hong Kong.

IHH Healthcare on its strategy of multi-country portfolio via both organic and inorganic growth: "The strategy provides a good balance of cash flow-generative markets such as that of Singapore and Malaysia, medium-term growth momentum from Turkey and long-term growth opportunities from India and Greater China. The group expects that the expansion projects in Malaysia and China will provide sufficient capacity to meet demand."

Its shares closed 2 Singapore cents or 1.14 per cent down at S$1.73.