IHH Healthcare posts lower operational earnings

One of Apollo Hospital's facilities in India

PETALING JAYA: IHH Healthcare Bhd’s net profit for the second quarter ended June 30 rose 29% year-on-year (y-o-y) to RM316.56mil compared with the same quarter a year ago thanks to a one-off gain.

The hospital operator made a RM241.08mil gain from the divestment of its 4.78% stake in India-listed Apollo Hospitals Enterprise Ltd in May.

Excluding all exceptional items, IHH’s net profit fell 54% to RM86.2mil due to higher depreciation, amortisation and finance costs following the opening of two new hospitals in Hong Kong and Istanbul in March this year.

Revenue rose by 12% y-o-y to RM2.77bil.

The higher topline result was due to the sustained growth in inpatient admissions and “revenue intensity” across all home markets and the ramp-up of new hospitals that were opened in March, IHH said.

“Tokuda Group and City Clinic Group in Bulgaria, acquired in June 2016 and since consolidated into Acibadem, also contributed to the increase in revenue,” the company said in a statement.