IHH’s earnings hit by unrealised forex losses

  • Business
  • Thursday, 26 Nov 2015

Gleneagles Kota Kinabalu, IHH's first healthcare facility in East Malaysia, is one of the group's three newer hospitals.

KUALA LUMPUR: IHH Healthcare Bhd posted earnings of RM118.49mil for the third quarter ended Sept 30, down 19.3% from a year earlier due to unrealised foreign exchange (forex) losses from its Turkish operations.

The premium healthcare provider told Bursa Malaysia that the unrealised forex losses of RM217.1mil stemmed from the translation of non-Turkish lira denominated borrowings by Acibadem Holdings in Q3 into the group’s financial statements.

It said headline revenue and earnings before interest, tax, depreciation, amortisation, exchange differences and other non-operational items (Ebitda) grew 16% and 12% respectively year-on-year (y-o-y) to RM2.1bil and RM476.4mil.

“Revenue growth was mainly driven by continued organic growth at existing hospitals and ramp up of its three newer hospitals: Acibadem Atakent Hospital in Turkey, as well as Pantai Hospital Manjung and Gleneagles Kota Kinabalu in Malaysia,” said IHH, which is 43.5% owned by Khazanah Nasional Bhd.

For the nine-month financial period, IHH’s earnings rose by a marginal 0.6% y-o-y to RM518.08mil while revenue grew 13.9% to RM6.16bil.

The group’s largest operating subsidiary, Parkway Pantai, recorded a 30.7% y-o-y jump in net profit to RM652.88mil.

IHH said that excluding the impact from the depreciation of the Turkish lira, revenue and Ebitda would have grown by 16% and 9% respectively over last year.

Acibadem Holdings, meanwhile, swung to a net loss of RM214.51mil from net profit of RM12.92mil previously.

The group’s medical education arm IMU Health and associate Parkway Life REIT saw a slight growth in revenue.

In a separate filing, IHH announced the appointment of a new chief financial officer, Low Soon Teck, effective Jan 10 next year to replace the retiring Tan See Haw.

IHH shares rose 2 sen to close at RM6.56 on Thursday, with 5.414 million shares changing hands.

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