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IHH Q1 profit up 56% at RM89.5m

IHH Healthcare Berhad saw profit attributable to shareholders rise 56 per cent to RM89.5 million (S$29.5 million) for the first quarter ended March 31, up from RM57.2 million in the year-ago period, it announced after market close on Thursday.

Revenue for the quarter was RM3.64 billion, up 28 per cent year on year from RM2.86 billion.

The group's largest operating subsidiary Parkway Pantai saw revenue grow 49 per cent to RM2.58 billion. But revenue at Turkish private healthcare provider Acibadem Holdings was down 5 per cent at RM967.1 million, while medical education arm IMU Health saw revenue fall 4 per cent to RM61.7 million due to lower student intake.

Earnings per share for the quarter were 0.78 sen, up from 0.44 sen in the year-ago period. No dividend was declared.

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Of its recent Fortis Healthcare acquisition, IHH managing director and chief executive officer Tan See Leng said: "In India, we are already working with Fortis' new leadership to execute its turnaround and are beginning to see some operational improvements to the business."

In its recently released Q4 2019 results, Fortis reported operational profit before tax for the first time, with cost savings and increased revenue, he said. IHH expects Fortis to continue to be accretive to earnings in years to come.

IHH said it will focus on ramping up its existing operations and integrating Fortis in the near to medium term. It noted that for Turkey, ongoing political uncertainty is expected to weigh on the economy, resulting in currency fluctuations.