Thomson Medical H1 earnings jump 82.6% to S$22.8 million

THOMSON Medical Group (TMG) on Friday (Feb 10) reported an 82.6 per cent year-on-year jump in net profit to S$22.8 million in the half year ended Dec 31.

Revenue for the period rose 26.6 per cent to S$184 million for H1 FY2023, the mainboard-listed condensed interim financial statements showed.

In particular, revenue from its hospital and specialised services segment grew by 14.6 per cent and 41 per cent respectively, with growth mainly attributed to the increase in overall patient loads and higher average bill sizes, TMG said.

In Singapore, revenue was up 28 per cent to S$139.0 million due to an increased contribution from core services such as fertility and paediatric medicine.

Revenue growth was further augmented by the income received from project-related services such as vaccination centres and transitional care facilities.

In Malaysia, revenue rose 23 per cent to S$45 million on the back of higher patient loads and higher case intensity handled. TMG said this was partially attributed to the increased operating capacity at Thomson Hospital Kota Damansara, which had a new wing expansion.

The company noted that there was a 52.8 per cent drop in other income to S$2.3 million due mainly to lower government grants received under the Jobs Support Scheme and tax rebates granted by the Singapore government.

The company’s total assets as at Dec 31 stood at S$1.34 billion, slightly lower than the S$1.36 billion recorded as at Jun 30, largely due to the depreciation of the Malaysian ringgit against the Singapore dollar.

It also recorded a net decrease in cash and cash equivalents during H1 of S$5.9 million, due mainly to payments for property and equipment, loan interests and lease liabilities, as well as dividend payouts. The decrease was partially offset by the increase in net cash flows from operations of S$52.8 million.

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Earnings per share for H1 stood at 0.086 Singapore cents, compared with 0.047 Singapore cents in the year-ago period.

No dividend was declared for the period.

With the transition to an endemic phase of Covid-19. TMG said it has seen an increasing trend of in-patient admissions at its hospitals. Its paediatric business has also shown a “healthy return” to pre-pandemic levels.

“Elective procedures which were deferred during the pandemic are now being performed. We expect this trend to continue into 2023,” said TMG’s executive director and group CEO Melvin Heng, adding that there has also been an “increased emphasis” on personal health.

The company also said it continues to support the government in several public-private partnerships, such as managing vaccination centres and transitional care facilities.

In Malaysia, TMG is expecting a strong recovery in the healthcare sector, particularly in fertility services.

Overall, it is “cautiously optimistic” about its business prospects and is expecting its existing and new business lines to grow, barring any unforeseen circumstances.