Growth at hospitals across markets and contributions from new medical centres gave first-quarter earnings a big boost at IHH Healthcare.
Net profit for the three months to March 31 rocketed 100 per cent to RM470 million (S$151 million), compared with the same period a year earlier, while revenue grew 8 per cent to RM2.68 billion.
There was "sustained growth in inpatient admissions and revenue intensity across all home markets and the continued ramp-up of newer hospitals opened in 2015", it reported yesterday. It also had a RM313.4 million gain from the sale of a non-core 6.07 per cent stake in Apollo Hospitals.
"Tokuda Group and City Clinic Group in Bulgaria, acquired in June 2016, also contributed to the higher revenue," said IHH.
Turnover at the Parkway Pantai division rose 8 per cent to RM1.67 billion. It is IHH's largest operating unit, with a network of 28 hospitals in the region, including Singapore and Malaysia.
Parkway Pantai's revenue boost was driven largely by Mount Elizabeth Novena Hospital in Singapore, as well as other hospitals such as Gleneagles Kota Kinabalu Hospital and Gleneagles Medini Hospital in Malaysia, among other things.
Inpatient admissions at its Singapore hospitals grew 4.1 per cent to 18,842, while patient volumes in Malaysia were up 3.1 per cent to 50,541.
AT A GLANCE
RM470 million (+100%)
RM2.68 billion (+8%)
Chief executive Tan See Leng, in a statement, said: "In March, we successfully launched two flagship projects. Gleneagles Hong Kong Hospital will anchor our Greater China growth strategy while Acibadem Altunizade Hospital is Acibadem's largest hospital in Turkey."
Quarterly earnings per share was 5.71 sen, compared with 2.86 sen a year earlier, while net assets per share was RM2.73 as of March 31, compared with RM2.67 as of Dec 31 last year.
IHH named India and Greater China as key growth markets and said it "expects to face cost pressures on several fronts".
These include continued competition for talent and higher purchasing costs with the stronger United States dollar.
Dr Tan added: "Amid persistently challenging market conditions, we delivered a resilient performance... We will build on our successes by enhancing service offerings."
IHH Healthcare shares closed down a cent at $1.91 yesterday.