The Maslak Acibadem Hospital in Istanbul, Turkey.
KUALA LUMPUR: Hospital operator IHH Healthcare Bhd
posted second-quarter (Q2) results ended June 30 that shrugged off the currency volatility in Turkey with a strong earnings before interest, taxes, depreciation and amortisaion (Ebitda) growth of 23% in that country instead.
The second-biggest hospital operator in the world had in June expected its Turkish subsidiary to post currency losses following the slump in the Turkish lira.
Instead, the 60%-owned Acibadem Holdings saw a 21% growth in revenue to RM867.9mil and 23% growth in Ebitda to RM159.6mil in the second quarter of the year. There was an exchange gain of RM7.5mil for Acibadem’s non-Turkish lira borrowings in Q2, compared to losses of RM22mil from a year earlier.
Khazanah Nasional Bhd-controlled IHH said in a statement that the better results for Acibadem was led by the continued ramping up of Acibadem Atakent Hospital and Acibadem Taksim Hospital, contribution from the new assets in Bulgaria and organic growth at existing hospitals and businesses.
IHH said on a constant currency basis, revenue and Ebitda for Acibadem grew by 21% and 22%, respectively.
Its Turkey segment also saw inpatient admissions improving by 15.7% to 37,750, while revenue intensity grew 1.3% to RM10,463 due to taking on more complex cases and adjusting prices to compensate for cost inflation.
As a whole, the company posted an 8% year-on-year growth in net profit in its second quarter to RM246.1mil from RM228.1mil on the back of revenue also growing by 18.2% to RM2.47bil.
This was after recognising an RM54.8mil gain from the divestment of its 90% stake in Shenton Insurance and the RM7.5mil exchange gain from Acibadem’s non-Turkish lira borrowings.
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