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Thomson Medical Q2 net profit slides 77% on higher finance costs
HIGHER finance costs from the acquisition of its healthcare business hit Thomson Medical Group's second-quarter net profit, which dived 77 per cent to S$1.3 million, down from S$5.4 million a year ago.
Finance costs rose 47 per cent to S$6.2 million, largely additional bank borrowings taken for the acquisition of the healthcare business, said Thomson Medical on Thursday.
However, revenue increased 8 per cent to S$57.2 million, thanks to higher overall patient load and average bill sizes in both the hospital operations and ancillary services segment, and the specialised and other services segment.
Earnings per share for the second quarter ended June 30 stood at 0.005 Singapore cent, down from 0.021 cent a year ago.
For the same factors, Thomson Medical's net profit for the half-year plunged 96 per cent to S$240,000, down from S$5.5 million in the same period a year ago.
Finance costs were 82 per cent higher at S$12.4 million, as Thomson Medical borrowed more for the acquisition of the healthcare business.
Revenue was up 6 per cent at S$111.7 million.
Earnings per share was 0.001 Singapore cent versus 0.021 Singapore cent previously.
Thomson Medical said it continues to grow its operations and expand its core specialities. For instance, the Thomson Breast Centre has commenced operations at Thomson Medical Centre in Singapore; the hospital will also set up its Thomson Surgical Centre by year-end.
In Malaysia, expansion works for the new wing with additional capacity for 400 beds at Thomson Hospital Kota Damansara are "on schedule", said Thomson Medical. The group previously said it expects the new wing to be completed by end-2020.
In Johor Bahru, piling works for the new Thomson Iskandar Medical Hub, which will house the 500-bed Iskandariah Hospital, are "in progress".