IHH Healthcare’s net profit up 26% to $57m in Q3

Thanks to higher inpatient revenue.

Mainboard-listed IHH Healthcare Berhad reported a 26% year-on-year increase in its net profit to $56.9m (RM146.9m) for the third quarter.

Its headline revenue grew 7% year on year to $690m (RM 1.78b), while earnings grew 8% year on year to $165.6m (RM427m).

The growth resulted from higher inpatient volumes and average revenue for inpatient admission at existing operations and the contribution from new hospitals commencing operations.

“IHH expects higher staff costs and other inflationary pressures to affect the Group for the rest of the year but will take mitigating action through price adjustments while improving operating leverage. The Group’s diverse geographical footprint also makes it susceptible to currency volatility. As such,IHH continues to monitor and minimise currency risks proactively. Barring unforeseen circumstances, the Group is confident about achieving earnings growth for the year ahead,” IHH Healthcare said in a statement.

Here’s more from IHH Healthcare:
Parkway Pantai, the Group’s largest operating subsidiary, reported 10% YoY growth in revenue to RM1.08 billion and an 11% increase in EBITDA to RM269.3 million in Q3 FY2014.

This was primarily due to the continued ramp up of Mount Elizabeth Novena Hospital in Singapore. The EBITDA growth was achieved in spite of increment in nurse’s salaries in Q3 2014, start-up losses recorded for the newly opened Pantai Hospital Manjung and pre-operating expenses for Gleneagles Hong Kong Hospital.

Mount Elizabeth Novena Hospital’s revenue jumped 72% YoY to RM95.6 million in Q3 2014, and its EBITDA of RM24.9 million was more than double the RM11.9 million the year before.