Raffles Medical's Q2 net profit up 2.2%

The Raffles Hospital is operated by Raffles Medical Group Ltd.
The Raffles Hospital is operated by Raffles Medical Group Ltd.PHOTO: BLOOMBERG

SINGAPORE - Mainboard-listed Raffles Medical Group reported on Monday that its net profit for the second quarter ended June 30, 2015, rose 2.2 per cent to $15.9 million from the year-ago period.

Revenue grew 7.2 per cent to $99.3 million on contributions from all business segments. Revenue from healthcare services was up 5.7 per cent and hospital services increased by 6.6 per cent.

Staff costs rose 9.4 per cent to $48.5 million, "in tandem with higher volume of business", said Raffles Medical.

The rate of increase for staff costs was higher than the growth in revenue mainly due to the recruitment of more doctors, specialists, nurses and ancillary staff for new and expanded operations at Raffles Hospital and medical centres at Shaw Centre, it said.

Looking ahead, the company said "the more measured pace of economic growth in Singapore and the region may have a dampening effect on healthcare demand."

"However, with the planned completion of the Raffles Holland V and RafflesHospital Extension projects, the group is well positioned for the future."

Based on current economic outlook and barring unforeseen circumstances, the company expects "to continue to grow for the rest of the year."

An interim ordinary dividend of 1.5 cents per ordinary share, to be paid on August 31, 2015, was declared.