IHH Healthcare profits surged 56.39% to $29.42m

Parkway Pantai’s revenue climbed 49% to $847.49m.

IHH Healthcare began the year on a bright note as its profits climbed 56.30% YoY to $29.42m (MYR89.51m) in Q1 from $18.81m (MYR57.23m) during the same period a year ago. Revenue also jumped 17.19% YoY to $1.20b (MYR3.64b) from $940m (MYR2.85b) in Q1 2018.

Revenue from Parkway Pantai, the group’s largest operating subsidiary, rose 49% YoY to $847.49m (MYR2.57b), thanks to the sustained organic growth from existing operations and the continued ramp-up of Gleneagles Hong Kong Hospital, as well as contribution from newly acquired Amanjaya and Fortis. The increase in revenue also included a one-off $9.37m (MYR28.5m) trustee management fee income from RHT relating to the sale of the RHT assets.

In Singapore, Parkway Pantai’s inpatient admissions decreased 1.2% to 19,118, but average revenue per inpatient admission grew 7.0% to $10,441 (MYR31,772).

Acibadem Holdings, a private healthcare provider in Turkey where IHH owns a 90% stake, saw revenue decline 5% to $317.81m (MYR967.1m). Inpatient admissions decreased 3% to 58,364 but revenue intensity grew 27.2% to $2,660 (MYR8,094) on a combination of price adjustments for patients on private insurance and paying out-of-pocket, taking on more complex cases and an increase in foreign patients.

IMU Health, the group’s medical education arm, saw revenue slip 4% to $20.28m (MYR61.7m) mainly due to lower student intake and population for some of its courses. Meanwhile, PLife REIT’s revenue grew 4% to $11.7m (MYR34m) backed by contribution from a nursing rehabilitation facility acquired in February 2018.

“Our decisive actions in Turkey to pare down $344.92m (US$250m) of non-Lira debt last month will reduce forex volatility on earnings from the second quarter onwards. In Greater China, we ramped up operations in Gleneagles Hong Kong with new service offerings catering to demand, while the development of Gleneagles Chengdu and Gleneagles Shanghai continues on track,” IHH managing director and CEO Tan See Leng said.

In its financial report, IHH said that it will focus on ramping up its existing operations and integrating Fortis in the near to medium term. The group will also increasingly leverage technology to increase its productivity and service offerings, including adopting more advanced medical treatments and to improve clinical outcome.