Mediclinic International reports higher half year profits
JOHANNESBURG - Mediclinic International Plc reported a 4% rise in half-year core earnings on Thursday as the company’s Swiss business adjusted to regulatory changes and its South African and Middle Eastern operations performed well.
The private healthcare group, listed in London and Johannesburg, said it made earnings before interest, tax, depreciation and amortisation (EBITDA) of 222 million pounds ($284 million), up 4% from 213 million pounds a year earlier.
It also said revenues rose around 9% in the six months ended Sept. 30, as it adapted to stricter regulations in Switzerland that had hobbled growth and put pressure on margins.
“The Group delivered a solid first-half financial performance with all three divisions growing revenue, EBITDA and patient volumes,” said Chief Executive Ronnie van der Merwe.
“I am pleased with the progress we have made in adapting the business to current healthcare trends and changing regulatory environments, especially at Hirslanden in Switzerland.”
Revenue from Mediclinic Southern Africa, which comprises South Africa and Namibia, rose 7%, off the back of an additional day case clinic opened in Stellenbosch, South Africa, in June.
Revenue at the company’s Middle Eastern unit rose by 8%, helped by the ramp-up of Mediclinic Parkview Hospital in Dubai and a gradual improvement in its Abu Dhabi business.
Hirslanden, the Swiss business that accounts for 47% of group revenue, grew revenue by 5%. The division had been hurt by regulatory changes, including tariff reductions for outpatients and a less favourable insurance mix.
Insurance mix refers to the different types of insured patients, with some on full cover and some on semi-cover, which are usually lower margin.
The changes had pushed Mediclinic’s earnings down by 4% in the year to the end of March 2019.
Mediclinic, founded in South Africa in 1983, runs 78 hospitals, five sub-acute hospitals, 13 day case clinics and 22 outpatient clinics.