The Raffles Medical Group yesterday reported a 4 per cent rise in third-quarter net profit to $16.2 million although higher staff costs served to offset stronger revenue growth.
Revenue for the three months ended Sept 30 surged 17.5 per cent to $119.3 million as all segments of the business did well.
However, staff costs jumped 23 per cent from the same period last year to $61.4 million, owing to staff recruitment to cater for expanding business operations and the new medical centre in Raffles Holland V, which officially opened last Friday.
Raffles Holland V is the group's first property venture here, placing healthcare services with lifestyle attractions. The fifth floor of the mall is dedicated to Raffles Medical Holland but other space has been leased to tenants such as DBS Bank, Virgin Active, Sushi Tei and Hoshino Coffee.
The company attributed its revenue growth to higher patient load from expanding the Raffles Medical clinic network and hiring more specialist consultants. It reopened Raffles Medical in Compass One Mall last month to serve patients in the Seng Kang area, and opened a new clinic in August to serve corporate clients in the West Coast area.
AT A GLANCE
$119.3 million (+17.5%)
$16.2 million (+4%)
In August last year, it acquired International SOS (MC Holdings) and its subsidiaries,which became full-service clinics open to the public this year. Excluding the revenue contribution from MCH, the group revenue would have grown by 7.9 per cent.
Earnings per share for the quarter was 0.93 cent, up from 0.91 cent for the same period a year earlier, while net asset value rose to 36.92 cents as at Sept 30, up from 34.96 cents as at Dec 31 last year.
The company said the dampening economic climate in Singapore and the region may affect the healthcare sector. However, it expected to keep growing and remain profitable, barring the unforeseen.
It said the opening of the Raffles Hospital Extension next year will enable it to enjoy "greater synergies brought about by the expanded area for outpatient and inpatient services". The 220,000 sq ft expansion of gross floor area at Raffles Hospital is set to be completed next year.
Lee Xin En