Raffles Medical sees 4% rise in Q3 profit on higher revenue

Raffles Medical's new medical centre in Holland Village, which officially opened on Oct 21.
Raffles Medical's new medical centre in Holland Village, which officially opened on Oct 21. PHOTO: RAFFLES MEDICAL GROUP

SINGAPORE - Raffles Medical Group reported a 4 per cent rise in net profit to S$16.2 million for the three months to Sept 30 from S$15.6 million for the year-ago quarter.

Revenue for the third quarter grew 17.5 per cent to S$119.3 million from S$101.5 million a year ago, due to higher patient load from expanding the RafflesMedical clinic network, more specialist consultants as well as the newly acquired International SOS (MC Holdings) Pte Ltd and its subsidiaries (MCH). Excluding the revenue contribution from MCH, the group revenue would have grown by 7.9 per cent.

Strong revenue performance was partly offset by higher staff cost due to staff recruitment to cater for the expanding business operations and the new medical centre in Raffles Holland V, officially opened on Oct 21. As at Monday, approximately 95 per cent of the space has been committed, with the remaining units under negotiation.

Raffles Medical said the dampening economic climate in Singapore and the region may impact the healthcare sector. But it said the group will continue to grow its business in Singapore and the region.

It said the opening of RafflesHospital Extension next year will enable it to enjoy the greater synergies brought about by the expanded area for outpatient and inpatient services. RafflesHospital Extension will contribute an additional 220,000 square feet of gross floor area to RafflesHospital.

Barring unforeseen circumstances, the directors expect the group to continue growing for the rest of the year and to remain profitable.