KUALA LUMPUR: IHH Healthcare Bhd, Asia’s largest hospital chain operator, has reported a 231% jump in revenue to RM2.697 billion for the second quarter (Q2) ended June 30, 2012, from RM816 million in the same period last year.
Profit after tax and minority interest (PATMI) increased sharply to RM403.5 million from RM76 million and earnings before interest, tax, depreciation and ammortisation (EBITDA) rose more than double to RM540.9 million from RM162.8 million previously.
CEO Dr Lim Cheok Peng said the strong performance was underpinned by the consolidation of its Turkish subsidiary, Acibadem Holdings, from Jan 24 and one-time profit from the sale of Mount Elizabeth Novena medical suites as well as fair valuation gain on Mount Elizabeth Novena’s investment properties held for rental.
“While the consolidation of Acibadem and the recognition of profits from the sale of 216 medical suites at Mount Elizabeth Novena helped to boost the group’s financial performance, improved performance in existing operations also contributed to the outstanding revenue and EBITDA growth,” he said.
He said this to reporters at the announcement of the group’s first half 2012 financial results here today.
For the six-month period, he said revenue grew 65% to RM2.764 billion from RM1.675 billion in the same period last year.
PATMI rose by 87% to RM333.8 million from RM178.5 million previously and EBITDA increased to RM581.4 million from RM334.5 million in the same period last year.
Lim said the group is seeing growth across the board in in-patient admission spurred by greater demand for quality healthcare services in Asia.
“We remain fully committed to leveraging our scale and leading market positions to capture further opportunities and expand our presence and reach in our home markets,” he said.
On the group’s expansion update, he said currently there are 13 ongoing hospitals development locally and overseas, including two joint ventures, that will add 2,372 new beds.
The group is also involved in two consultancy agreement, one each in India and Vietnam, for 300 and 313 beds, respectively.
Going forward, he said IHH’s earnings are expected to grow as a result of revenue growth and interest cost savings.
Based on the previous trend and the summer season in Turkey, he said demand for healthcare in the third quarter is expected slow down before picking up in the fourth quarter.
The group would continue to expand in its home markets of Malaysia, Singapore and Turkey, including increasing the number of beds across hospital networks through new developments, expansion of existing facilities and selective acquisitions, he said.
“The group will also look for suitable opportunities in China, India and Hong Kong, as well as in other parts of Asia and the Central and Eastern European, Middle Eastern and North African regions,” he said.