Johannesburg - South Africa's largest private hospital group, Mediclinic International, reported a 26-percent drop in underlying half-year earnings per share (EPS) on Thursday, as its operations in the Middle East weighed on profits.
Underlying EPS fell to 12.8 pence, from 17.2 pence for the six months to end-September.
Earnings were largely impacted by the shares issued to acquire Al Noor, a firm Mediclinic bought last year. Al Noor helped Mediclinic double its exposure to the United Arab Emirates, but negatively affected its operating performance.
Mediclinic's underlying earnings before interest, tax, depreciation and amortisation rose 11 percent to 220 million pounds ($274 million).
Revenue from Mediclinic's Swiss Hirslanden unit rose 5 percent and the South African firm said it expects modest growth and stable margins for the 2016/17 financial year.
Switzerland is the largest contributor to the group's revenue in pound terms, and turnover was further boosted by sterling's decline after Brexit, CEO Danie Meintjes said.
Read also: Mediclinic warns of lower Al Noor income
Meintjes said he expects continued growth in Southern Africa despite macro-economic challenges and increasing competition anticipated in the year ahead.
In the Middle East, revenue growth is expected to be at the bottom end of expectations after new health insurance regulations took effect in July, he said, adding that the region offered a “long-term growth opportunity”.
Mediclinic shares listed on the Johannesburg Securities Exchange fell 2.6 percent to R148.11, compared with a 1.1 percent gain in the benchmark Top-40 index by 08h17 GMT.
REUTERS
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