IHH second-quarter EBITDA up 20% to RM419.6m

Improving cost efficiencies partly to thank.

IHH Healthcare Berhad (IHH) announced robust earnings for its H1 2013 results. In the three months ended June 2013, IHH’s revenue, excluding recognition of the sale of medical suites, grew by 14% YoY to RM1.68 billion from RM1.48 billion. Meanwhile, earnings before interest, taxes, depreciation, amortisation, exchange differences & other non-operational items (EBITDA) registered a solid 20% increase YoY to RM419.6 million from RM349.2 million.

The Group’s robust earnings were buoyed by the ramp up of new hospitals this quarter. Its newest facility in Singapore, Mount Elizabeth Novena Hospital (Novena), turned EBITDA positive for this quarter.

Acibadem, which is equipped with state-of-the-art medical technology and high-quality medical personnel, demonstrated healthy earnings and improved EBITDA from its two new hospitals – Acibadem Ankara and Acibadem Bodrum – despite a seasonal dip in inpatient admissions volumes this quarter compared to Q1 2013, according to IHH.

Acibadem Ankara, which opened in November 2012, turned EBITDA positive for this quarter while Acibadem Bodrum continued reducing its EBITDA losses.

Profit after tax and minority interests (PATMI) this quarter, excluding exceptional items and recognition of the sale of medical suites, increased 60% YoY to RM188.7 million, due to the rise in EBITDA, savings in finance costs from repayment of short-term loans, and a one-off RM22.0 million tax credit this quarter relating to tax from a previous year. The rise in EBITDA is due to growth in existing operations and continued cost efficiencies.

In the six months ended June 2013, excluding the recognition of the sale of medical suites, the Group achieved 21% increase for both revenue and EBITDA compared to the same period last year. The strong performance was driven by organic growth of existing operations, ramping up of new hospitals as well as the full 6 months consolidation of Acibadem Holding’s performance in H1 2013 as compared to only 5 months consolidation in H1 2012 when the Group acquired Acibadem Holding on 24 January 2012.

The Group’s YTD 2013 PATMI excluding exceptional items and the recognition of sale of medical suites increased 39% to RM322.1 million, compared to the same period a year ago.