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Raffles Medical Q3 profit gains 1% as expat plan renewals slip, hospital loads improve
RAFFLES Medical Group's net profit grew by one per cent to S$16.4 million for the third quarter as lower renewal rates for expatriate plans offset higher local patient loads at the hospitals.
On a per-share basis, net profit was unchanged at 0.93 Singapore cent for the three months ended September, the hospital and clinic operator announced before the market opened on Monday. For the first nine months of the year, net profit has increased by 0.5 per cent to S$48.7 million, or 2.77 Singapore cents per share.
Revenue increased marginally by 0.3 per cent to S$119.6 million. Hospital services' contribution rose 3.1 per cent on the back of higher local patient load, but healthcare services revenue slipped 4.2 per cent due to lower renewal of international healthcare plans for expatriates.
In the fourth quarter of the year, the company is opening new clinics in Changi Airport's Terminal 4 and Transit 4. It also plans to open the extension of Raffles Hospital to raise capacity. Looking further ahead, Raffles Hospital Chongqing is slated for operational start by the second half of 2018, while Raffles Hospital Shanghai has a target start in the second half of 2019.
Raffles Medical expects to remain profitable in 2017.