IHH Healthcare profits crashed 88% to $19.25m

It was hit by costs from opening Gleneagles Hong Kong Hospital and Acibadem Altunizade Hospital.

IHH Healthcare’s profits in the first quarter of 2018 plummeted 88% in a year from $158.05m (RM470.05m) to $19.25m (RM57.24m). Revenue, however, was up 6% from $904.47m (RM2.69b) to $961.63m (RM2.86b).

According to its financial statement, profits were hit by incremental depreciation, amortisation and finance costs, as well as the opening of Gleneagles Hong Kong Hospital and Acibadem Altunizade Hospital, which were both launched in March 2017.

However, the company recorded higher revenue thanks to the organic growth of its existing operations and the ramp-up of its two new hospitals.

Parkway Pantai’s revenue and earnings jumped 4% and 2% to $581.68m (RM1.73b) and $114.42m (RM340.3m) respectively, thanks to the ramp-up of Pantai Hospital Manjung, Gleneagles Kota Kinabalu Hospital and Gleneagles Medini Hospital in Malaysia.

Parkway Pantai’s Singapore hospitals saw an overall 2.7% increase in inpatient admissions to 19,352 driven by an increase in both local and foreign patients. Revenue per inpatient admission in Singapore increased 5% to RM29,328.

Parkway Pantai’s Malaysia hospitals’ inpatient admissions dipped 0.6% to 50,250 inpatient admissions, whilst revenue per inpatient admission jumped 9.6% to RM6,427. The India hospitals’ inpatient admissions jumped 6.7% to 17,075 inpatient admissions, whilst revenue per inpatient admission increased 8.5% to RM8,058.

Meanwhile, Acibadem Holdings’ revenue and earnings jumped 12% and 29% to $342.96m (RM1.02b) and $63.51m (RM188.9m) respectively.

Acibadem Holdings’ inpatient admissions grew 14.4% to 60,166 with contributions from Acibadem Altunizade Hospital and as well as the ramp-up operations of existing hospitals. Its inpatient revenue per inpatient admission grew 14.4% to RM8,541 with price increase impact imposed on private insurance and out-of-pocket patients, more complex cases taken and increase in foreign patients.

IMU Health’s revenue jumped 2% to $21.55m (RM64.1m) due to the shortening of the semester for some courses. ParkwayLife REIT’s external revenue edged up 1% to $10.99m (RM32.7m) after it bought an elderly nursing rehabilitation facility in Japan.

“Given the Group’s geographical footprints across Asia and CEEMENA, the Group is susceptible to geopolitical risks and currency volatility in the countries that it operates, which would result in foreign exchange translation differences in the Group’s balance sheet and income statement,” it commented.