Mediclinic expecting a 6.5% increase in revenue
DURBAN - JSE-listed private healthcare services group Mediclinic International plc is expecting its revenue in Mediclinic Southern Africa to increase by around 6.5percent for the financial year 2020, boosted by a good trading performance during the year. In the group’s half-year results for the six months to end September, the Southern Africa business delivered a 7percent increase in revenue, with a rise in inpatient bed days sold of 2.7percent - in line with its expectations.
In other operations, Mediclinic Middle East reported an 8.5percent increase in revenue, with inpatient and outpatient volumes in the division up by 9 and 5.5percent, respectively, while Hirslanden delivered revenue growth of around 5percent, with inpatient admissions benefiting from the contribution of Clinique des Grangettes.
The Southern Africa business operates 53 hospitals, five sub-acute hospitals and nine day-case clinics across South Africa and three hospitals in Namibia with more than 8500 inpatient beds at the end of September.
The group said in the Southern Africa business its earnings before interest, tax, depreciation and amortisation (Ebitda) margin guidance for financial year 2020 remained unchanged.
“In line with the group’s strategic objectives and a continued focus on improving clinical quality and patient experience, further investment will be made in employees and information communication technology during financial year 2020,” the group said. The group added that, together with the expected lower margin contribution from Intercare and the ramp-up of the new Mediclinic Stellenbosch facility, it was anticipated to result in a pre-IFRS 16 Ebitda margin of around 20percent.