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NMC Health H1 net profit up 48pc

ABU DHABI, August 24, 2016

NMC Health, a leading integrated private healthcare network operator in the UAE, today reported an adjusted net profit attributable to shareholders of $67.8 million for the six months ended June 30, an increase of 48.2 per cent year-on-year.

Revenues increased by 46.9 per cent year-on-year to reach $578.3 million, it said. EBITDA reached $115.9 million (+68.2 per cent YoY), resulting in a group EBITDA margin of 20 per cent, the company said.

Basic earnings per share (EPS) was $0.336 (H1 2015: 0.213); diluted EPS was at $0.334 (H1 2015: $0.213); and adjusted EPS was $0.365 (H1 2015: US$0.246).

The strong performance of the first half of 2016 was underpinned by progress across the business and successful execution of the company’s long-term two-stage strategy which has started to deliver significantly improved growth for the group despite the more moderate UAE macro environment, the company said.

“Our initial focus post-IPO was to organically expand our capacity to absorb market growth driven by population increase, insurance penetration, increased healthcare spend retention, delivery of increased complexity and thus higher value added care within our hospitals to the growing patient population of NMC,” it said.

“Today our healthcare network includes the first private sector advanced tertiary and quartenery care capable hospital, benefiting from NMC network cross-referrals and third-party referrals. All new hospitals and medical centres that opened in 2013 and 2014 achieved breakeven ahead of initial guidance and NMC Royal, which opened in September 2015, is on-track to meet the guidance EBITDA breakeven period of 24 months.”

Both DIP General Hospital and Brightpoint Hospital have ramped up operational beds from being around 50 per cent of licensed capacity when they commenced operations to 72 per cent and 100 per cent respectively as of the start of 2016, it said.

During the period total patient visits to Group assets increased by 42.6 per cent YoY to 2.1 million and more importantly the group healthcare services  revenue per patient increased by 35 per cent to $170 despite very moderate price increases which are broadly consistent with recent trends.

This growth was mainly achieved through the entry into higher complexity, less ‘commoditised’, and thus increased value added medical services segments (examples include advanced tertiary and quaternary care, specialised maternity services, long-term care and fertility services), it said.

Dr B R Shetty, chief executive officer, said: “Our focus has consistently been on delivering a long-term strategy capable of enhancing our growth prospects in a diversified and sustainable manner. We have expanded our asset and brand portfolio organically and inorganically into additional healthcare services segments, extended our presence across the continuum of care, entered into higher growth and margin specialties with very favourable regional supply/demand dynamics and selectively entered into new geographies to position NMC at the intersection of multiple growth channels to the ultimate benefit of all our stakeholders.

“In H1 2016 we have just started to reap the long-term rewards of several years post IPO work on the two stages of our growth strategy. Despite record growth this year, we expect strong performance to continue going forward supported by the increased utilisation of our organic 485- bed capacity expansion over the past 18 months, recent acqusitions of businesses in high growth segments, very good performance at the major specialty hospitals and in particular Dubai based hospitals and medical centres as mandatory healthcare insurance penetration continues to expand,” Dr Shetty said. – TradeArabia News Service


 
 




Tags: profit | NMC Health |

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