You are currently viewing our desktop site, do you want to visit our Mobile web app instead?
 Registered users can save articles to their personal articles list. Login here or sign up here

Mediclinic International reports higher half year profits

South African and Middle Eastern operations perform well during reporting period.

Mediclinic International 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.

Read: Mediclinic interims set to confirm healthy growth

It also said revenues rose around 9% in the six months ended September 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.

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

COMMENTS   0

To comment, you must be registered and logged in.

LOGIN HERE

Don't have an account?
Sign up for FREE

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: