IHH Healthcare posts 9% growth in Q2 profit

The Mount Elizabeth Novena Hospital in Singapore (above) continues to be a star performer for IHH Healthcare.
The Mount Elizabeth Novena Hospital in Singapore (above) continues to be a star performer for IHH Healthcare.PHOTO: IHH HEALTHCARE

New hospitals, higher revenue in key markets play part in boosting results

Solid growth in its key markets of Malaysia, Singapore and Turkey helped lift second-quarter results for healthcare giant IHH Healthcare. Net profit for the three months to June 30 rose 9 per cent to RM228.1 million (S$75.4 million) as revenue jumped 12 per cent to RM2.09 billion.

The increase came on the back of higher revenue across its key markets, along with continued organic growth and contributions from recently opened hospitals, said the group in a statement yesterday.

IHH, Asia's largest hospital operator, opened Gleneagles Kota Kinabalu in East Malaysia in May, as well as the Acibadem Atakent Hospital in Turkey and the Pantai Hospital Manjung in Malaysia last year.

Net profit for the half year climbed 9 per cent to RM399.6 million, while revenue grew 13 per cent to RM4.096 billion.

  • AT A GLANCE

  • NET PROFIT:

    RM228.1 million (+9%)

    REVENUE:

    RM2.09 billion (+12%)

    DIVIDENDS: N.A.

For the quarter, IHH's largest operating subsidiary Parkway Pantai continued to be the largest contributor to its overall revenue, with turnover rising 17 per cent to RM1.29 billion.

This was driven by the continued ramp-up of Mount Elizabeth Novena Hospital in Singapore, together with contribution from its other hospitals and healthcare businesses.

Acibadem Holdings, Turkey's largest private healthcare provider by registered beds, logged a 6 per cent increase in revenue to RM716.5 million, led by organic growth at its existing hospitals and the ramp-up of the new Acibadem Atakent Hospital.

It said the strengthening of the Singapore dollar helped offset the impact of a weaker Turkish lira upon its translation into Malaysian ringgit, its reporting currency.

IHH expects to have sufficient capacity to meet increasing demand for quality private healthcare across its home markets, which will, in turn, drive revenue growth.

"Our capacity will reach more than 10,000 beds before 2017 with the expansion of existing facilities, through new developments and selective acquisitions."

Earnings per share for the quarter was 2.78 sen, up from 2.56 sen, while net asset value per share was RM2.52 as at June 30, up from RM2.39 as at Dec 31 last year.

Managing director and chief executive Tan See Leng added that the group's acquisition of Continental Hospitals in India has further widened its footprint in that key market, as part of a wider strategy to expand across Asia as well as Central and Eastern Europe, the Middle East and North African regions.

"We will continue to explore opportunities in key high growth markets while keeping a firm hand on our diversified operations and pipeline of beds coming onstream."

A version of this article appeared in the print edition of The Straits Times on August 27, 2015, with the headline 'IHH Healthcare posts 9% growth in Q2 profit'. Print Edition | Subscribe