(Correcting adjusted earnings before interest, taxes, depreciation and amortisation for first half of financial 2019.)
(Alliance News) - Mediclinic International PLC said Wednesday it delivered a solid performance in the first half of its financial year across all of its operations, with revenue and earnings set to rise.
For the six months to the end of September, the dual-listed private hospital group said adjusted earnings before interest, taxes, depreciation and amortisation will increase by around 3.5% from GBP213 million the year before.
This is on revenue that is to grow by 9.0% on a reported basis from GBP1.39 billion the prior year. On a constant currency basis, revenue will increase by 6.5% year-on-year.
Mediclinic said its accounted share of profit from its 30% stake in Spire Healthcare Group slightly rose to GBP2.1 million from GBP1.8 million the year before.
The London-listed investee reported in September that its performance for the first half of 2019 was in line with expectations, and its guidance for the year remained unchanged.
For the half-year ended June 30, Spire Healthcare recorded pretax profit of GBP9.6 million versus a pretax loss of GBP2.2 million a year before, on revenue that grew by 3.4% to GBP491.6 million.
Mediclinic said its Hirslanden business in Switzerland performed well, despite the regulatory changes in the country's healthcare system.
Revenue from the business rose by 5.0% year-on-year from CHF826 million, about GBP648.5 million, on higher inpatient admissions and a contribution from Clinique des Grangettes, which was combined with Hirslanden Clinique La Colline in October 2018.
In South Africa, revenue for the period increased by 7.0% from ZAR8.01 billion, or GBP418 million, the prior year, driven by a rise in inpatient bed days mainly coming from Mediclinic's investment in the Intercare group of companies.
The group had acquired a 50% interest in Intercare, a South African hospital manager and operator, for ZAR32 million which was made effective in November 2018.
Ebitda margins for South Africa however, dipped to 20% from 21%.
Finally, in the Middle East, revenue grew by 8.5% from AED1.50 billion, around GBP318.6 million the year before on higher inpatient and outpatient volumes. The Ebitda margin for the period edged upwards to 9.5% from 9.4%.
"I am encouraged by the first-half performance of the group with trading in line with expectations. At all three divisions, our core acute care business is being supplemented by our continued expansion across the continuum of care," said Chief Executive Officer Ronnie Van der Merwe.
Mediclinic International shares were 4.4% higher at ZAR70.89 in Johannesburg on Wednesday. In London, shares were up 3.9% at 371.90 pence each.
The company will publish its interim results on November 14.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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