Raffles Medical Group profits down 14.7% in H1

Operating revenue fell due to the promotion and building costs for its Chongqing hospital.

Raffles Medical Group’s profit fell 14.7% YoY to $27.9m in H1 from $32.7m in 2018 amidst higher insurance claims and operating costs for Chongqing hospital in China. Operating revenue rose to almost $255.3m, up from $240.4m in H1 2018.

Also read: Raffles Medical Group profits slipped 13.7% to $13.65m in Q1

In Q2, profits dipped 15.6% YoY to $14.2m from $16.9m in the previous quarter, whilst operating revenue for the second quarter also climbed by 5.6% YoY to $127m from the $120m in 2018. Without the weak results brought about by the Chongqing hospital, profit would’ve grown 0.4% instead of 15.6% in Q2.

Earnings per share was $0.008 cents for the quarter, down from $0.0095 cents a year ago.

The report also showed that the group’s operating expenses rose by 22.2% in Q2 to $8.9m from $7.3m last year, which Raffles attributed to the higher other operating expenses due to the promotion and building of Raffles Specialist Centre and Raffles Hospital Chongqing.

The firm also saw an increase in insurance claims as its contract provisions went up by $10.2m, a result of higher provision for unearned premiums resulting from billings for premium from the group’s insurance business.

The group stated that its Q2 results are in line with their directors’ expectations.