22 Jul 2015 07:00
MD Medical Group Reports Strong Operational Growth Across All Indicators in 1H 2015
22 July 2015, Moscow - MD Medical Group Investments Plc ("MD Medical Group", "MDMG" or the "Company" - LSE: MDMG), Russia's leading provider of private women's and children's healthcare, today announces its operating results for the second quarter and first half of 2015.
Key operational highlights for 1H 2015:
· The total number of deliveries increased by 25% year-on-year (y-o-y) to 2,651
· The total number of IVF cycles increased by 19% y-o-y to 4,211
· The total number of in-patient treatments increased by 53% y-o-y to 25,063
· The total number of out-patient treatments increased by 39% y-o-y to 575,770
Elena Mladova, Chief Executive Officer of MD Medical Group, said:
"In the first half of 2015, notwithstanding the challenging macroeconomic situation, we maintained positive dynamics and once again reported strong growth on all key operational indicators as a result of successful delivery on our plans.
The key growth factors include the performance of our new hospital in Ufa and the recently acquired chain in Novosibirsk Medical Centre Avicenna. This reflects the success of our regional development strategy and decision-making as we implement it. 1H 2015 operational growth was also supported by further ramping-up operations and utilisation growth at our Lapino hospital, and at other existing Group clinics.
Looking at the numbers, the total number of deliveries in the Group's hospital grew 25% in 1H 2015 as compared to 1H 2014. In response to the changing macroeconomic situation and in order to maintain a reasonable margin we have adjusted our prices for deliveries and as a result the average cost of deliveries in Moscow hospitals in 1H 2015 increased by 16%. I want to underscore that at the same time, the number of deliveries at these hospitals on a like-for-like basis increased by 1% y-o-y.
In 1H 2015, the total number of IVF cycles increased by 19% year-on-year, which reflects a further strengthening of our leading position on Russia's IVF market. Currently, our IVF facilities operate on a capacity utilisation level close to 100%, and in response to continued strong demand for these services we plan to open two additional IVF departments with a maximum annual capacity of 1,000 IVF cycles each at the Group's existing Moscow clinics in 2H 2015.
The total number of in-patient and out-patient treatments in 1H 2015 increased significantly, rising by 53% and 39% y-o-y respectively.
We are pleased with the development of our business over this period and remain confident that this solid performance will continue."
Deliveries
· In Q2 2015, the total number of deliveries increased 19% y-o-y to 1,327.
· In 1H 2015, the total number of deliveries increased 25% y-o-y to 2,651.
· The like-for-like1 (LFL) number of deliveries for 1H 2015 grew by 1% y-o-y to 2,140.
· In 1H 2015, the number of deliveries at Mother & Child Ufa hospital was 328.
IVF
· In Q2 2015, the total number of IVF cycles across the Group increased by 19% y-o-y to 2,301.
· In 1H 2015, the total number of IVF cycles grew 19% y-o-y to 4,211.
· LFL number of IVF cycles in 1H 2015 amounted to 3,540, which corresponds to last year's level.
In-patient treatments
· In Q2 2015, the total number of in-patient treatments increased by 52% y-o-y to 12,486 thanks to:
o 12% increase in OBGYN in-patient days;
o 51% increase in paediatric in-patient treatments;
o 377% increase in in-patient days using other medical services. This significant growth was mostly due to acquisition of Avicenna, in particular - the results of the surgical departments; the opening of a plastic surgery department at the Ufa hospital, as well as increased utilisation of in-patient surgery and therapy departments at Lapino.
· In 1H 2015, the total number of in-patient treatments increased by 53% y-o-y to 25,063.
· On a LFL basis, the number of in-patient treatments for 1H 2015 increased by 6% y-o-y to 17,335.
Out-patient treatments
· In Q2 2015, the total number of out-patient treatments increased by 41% y-o-y to 290,662 thanks to the following factors:
o 22% increase in OBGYN out-patient treatments;
o 29% growth in paediatric out-patient visits;
o 94% increase in other medical services.
· In 1H 2015, the total number of out-patient treatments increased by 39% to 575,770.
· On a LFL basis, the number of out-patient treatments for 1H 2015 increased by 6% y-o-y to 436,867.
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Like-for-like | |||||||||
Q2 2015 | Q2 2014 | y-o-y, % | 1H 2015 | 1H 2014 | y-o-y, % | 1H 2015 | 1H 2014 | y-o-y, % | |
Obstetrics and Gynaecology | |||||||||
Deliveries | 1,327 | 1,115 | 19% | 2,651 | 2,118 | 25% | 2,140 | 2,118 | 1% |
In-patient treatments (except deliveries) | 5,542 | 4,954 | 12% | 11,710 | 9,848 | 19% | 9,139 | 9,848 | -7% |
Out-patient treatments | 112,366 | 92,228 | 22% | 220,297 | 184,485 | 19% | 189,918 | 184,485 | 3% |
IVF | |||||||||
2,301 | 1,926 | 19% | 4,211 | 3,529 | 19% | 3,540 | 3,529 | 0% | |
Paediatrics | |||||||||
In-patient treatments | 4,012 | 2,6542 | 51% | 8,259 | 5,526 | 49% | 6,538 | 5,526 | 18% |
Out-patient treatments | 84,657 | 65,682 | 29% | 168,143 | 131,395 | 28% | 138,998 | 131,395 | 6% |
Other medical services | |||||||||
In-patient treatments | 2,932 | 615 | 377% | 5,094 | 956 | 433% | 1,658 | 956 | 73% |
Out-patient treatments | 93,639 | 48,2513 | 94% | 187,330 | 97,007 | 93% | 107,951 | 97,007 | 11% |
Total | |||||||||
Total deliveries: | 1,327 | 1,115 | 19% | 2,651 | 2,118 | 25% | 2,140 | 2,118 | 1% |
Total IVF: | 2,301 | 1,926 | 19% | 4,211 | 3,529 | 19% | 3,540 | 3,529 | 0% |
Total in-patient treatments: | 12,486 | 8,223 | 52% | 25,063 | 16,330 | 53% | 17,335 | 16,330 | 6% |
Total out-patient treatments: | 290,662 | 206,161 | 41% | 575,770 | 412,887 | 39% | 436,867 | 412,887 | 6% |
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For further information please contact:
Investors | Media
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Elena Romanova MD Medical Group Investments PlcTel: +7 495 331 4120e.romanova@mcclinics.ru | EMMoscowTom Blackwell / Sergii Pershyn Tel: +7 495 363 2849MDMG@em-comms.com
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About MD Medical Group
MD Medical Group operates in the highly attractive Russian private healthcare service market and has a leading position in high-quality women's health and paediatrics. The company manages 23 modern healthcare facilities, including 4 hospitals and 19 outpatient clinics in Moscow, St. Petersburg, Ufa, Perm, Samara and Samara region, Novosibirsk, Irkutsk, Yaroslavl and Ryazan.
The Company's shares have been listed on the London Stock Exchange (LSE ticker "MDMG") in the form of Global Depositary Receipts (GDRs) since 12 October 2012.
Forward-Looking Statements:
This press release contains forward looking statements, which are based on the Company's current expectations and assumptions and may involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. The forward looking statements contained in this press release are based on past trends or activities and should not be taken that such trends or activities will continue in the future. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a number of variables which could cause actual results or trends to differ materially, including, but not limited to: conditions in the market, market position of the Company, earnings, financial position, cash flows, return on capital and operating margins, anticipated investments and economic conditions; the Company's ability to obtain capital/additional finance; a reduction in demand by customers; an increase in competition; an unexpected decline in revenue or profitability; legislative, fiscal and regulatory developments, including, but not limited to, changes in environmental and health and safety regulations; exchange rate fluctuations; retention of senior management; the maintenance of labour relations; fluctuations in the cost of input costs; and operating and financial restrictions as a result of financing arrangements.
No statement in this press release is intended to constitute a profit forecast, nor should any statements be interpreted to mean that earnings or earnings per share will necessarily be greater or lesser than those for the relevant preceding financial periods for the Company. Each forward looking statement relates only as of the date of the particular statement.