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IHH Q2 net profit down 48% on absence of one-off gain

PRIVATE healthcare provider IHH Healthcare's second-quarter net profit fell 48 per cent to RM165.11 million (S$54.9 million) in the absence of a one-off divestment gain that was chalked up in the corresponding quarter a year ago.

Q2 FY17 included a one-off gain of RM241.1 million from the divestment of Apollo Hospitals.

Revenue for the three months ended June 30, 2018, dipped 4 per cent to RM2.66 billion, due to the strengthening of the Malaysian ringgit against the currencies in other countries in which IHH operates. On constant currency terms, revenue would have grown 14 per cent, it said, due to sustained organic growth at existing operations and the continued ramp-up of Gleneagles Hong Kong and Acibadem Altunizade which opened in March 2017.

Earnings per share for the quarter fell to 1.75 Malaysian cents, down from 3.84 cents previously. 

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For the six-month period, net profit slumped 72 per cent year on year to RM222.34 million, while revenue rose one per cent to RM5.51 billion. 

IHH managing director and chief executive officer Dr Tan See Leng said the group is watching developments involving the Turkish lira closely and is accelerating plans to restructure and reduce Acibadem’s foreign debt to manage its exposure to currency volatility.

He added: "In Greater China, we remain on track to sequentially realise our greenfield pipeline; and in India, we are heartened by the resounding mandate from Fortis shareholders at the recent shareholders’ meeting, which speaks to their trust in our ability to drive performance at Fortis while addressing its immediate funding needs. Adding Fortis Healthcare to the IHH family signifies a transformational growth opportunity for us in one of the world’s fastest-growing markets.”