Raffles Medical maintains profit for Q1 despite lower revenue by cost-cutting

The Raffles Hospital on North Bridge Road on Feb 23, 2011.
The Raffles Hospital on North Bridge Road on Feb 23, 2011. PHOTO: ST FILE

SINGAPORE - Raffles Medical Group posted on Monday (April 24) a marginal 0.1 per cent rise in net profit to S$15.5 million for its first quarter from the same period a year ago.

For the three months to March 31, 2017, revenue declined 1.7 per cent to S$114.9 million from a year ago the year-ago period due partly to softer than expected demand from foreign patients, the company said in its filing with the Singapore Exchange.

Despite the lower revenue, the group was able to contain costs and maintain its profitability, it said.

It added that profitability was alsi affected by the lower wage credit received in the quarter of S$0.7 million as compared to S$1.9 million in the corresponding year-ago period. Excluding the wage credit received, the group's operating profit would have grown by 3.8 per cent.

The company said that going forward, demand for healthcare services may be affected by the economic slowdown in Singapore and the region, as well as increased competition from regional countries for foreign patients.

But based on the current economic outlook and barring unforeseen circumstances, it expects the group to remain profitable in 2017.