IHH Healthcare's second quarter net profit jumps 29% thanks to one-off divestment gain

SINGAPORE - Singapore-listed IHH Healthcare saw net profit grow by 29 per cent year on year in the second quarter, to RM316.6 million (S$100.8 million), the company said on Wednesday (Aug 23).

Earnings got a boost from a RM241.1 million one-off gain as the group shed a minority stake in Apollo Hospitals in May.

But, this gain aside, profits were 54 per cent lower, despite a 12 per cent rise in revenue to RM2.77 billion for the three months ended June 30.

Higher depreciation, amortisation and finance costs ate into the turnover from sustained growth in-patient admissions, higher average revenue from each patient and the opening of new hospitals, the group said.

Earnings per share for the quarter was 3.84 sen, up from 2.99 sen before, while net asset value ticked up to RM2.69 a share, against RM2.67 as at Dec 31, 2016 (checked).

Meanwhile, revenue for the half-year was up by 10 per cent to RM5.46 billion as net profit jumped 63 per cent to RM786.7 million, compared with the previous year.

IHH managing director and chief executive Tan See Leng said in a media release: "We delivered topline growth across all markets despite a challenging operating environment by keeping a relentless focus on core operations while actively rebalancing assets in our portfolio. We are pleased that our two newest hospitals, which will be growth drivers as they ramp up, are already contributing to revenue."

IHH shares closed half a cent or 0.26 per cent lower at $1.895, before the results were announced.