TalkMed's H1 revenue hit by travel curbs, but cost cuts hold net profit steady at S$10.8m

ONCOLOGY specialist TalkMed Group posted a 1.1 per cent rise in net profit to S$10.8 million for the six months ended June, even as its patient numbers were hit by travel restrictions, the Catalist-listed company announced on Tuesday evening.

The company proposed an interim dividend of S$0.007 per share, to be paid on Aug 20.

TalkMed's H1 revenue fell 5.9 per cent to S$28.9 million, as foreign patient numbers dropped amid the pandemic. A large number of its patients in Singapore are from other parts of South-east Asia, the company said.

Revenue from its unit Stem Med, which does stem cell processing and storage, fell 6.2 per cent to S$0.47 million. There was no revenue derived from cellular and gene therapy unit CellVec.

Instead, TalkMed recognised a S$2.4 million impairment loss on additional investments injected into CellVec in H1. The impairment was "due to the adverse impact of Covid-19 on the cellular and gene therapy segment and the continued losses incurred".

Despite the topline impact, TalkMed recorded a decrease in costs such as employee benefits expenses, share-based payments, depreciation of plant and equipment and income tax expenses.

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Looking ahead, the company said that the full impact of Covid-19 on its operations in FY2021, in both Singapore and Hong Kong, "cannot be ascertained at this point".

"(Travel) restrictions that have been put in place by the Singapore government to tackle the Covid-19 situation continue to affect our patient numbers at our centres," it said.

Travel curbs have also affected foreign patient numbers in Hong Kong, especially from mainland China. Nevertheless, TalkMed's Hong Kong centres continue to focus more on the domestic market.

Shares of TalkMed closed flat at S$0.40 on Tuesday.