IHH Healthcare Q2 profits crashed 65.8% to $104.49m

The weakened currencies against the Malaysian ringgit hurt its profits and revenues.

IHH Healthcare profits plummeted 65.8% YoY to $104.49m in Q2 as revenue slipped 4% YoY to $2.66b amidst the translational effect of the stronger Malaysian ringgit against currencies where IHH operations take place, an announcement revealed.

Profit attributable to ordinary equity holders also decreased 48% YoY to RM$165.1m whilst earnings per share dropped to $1.75 from $3.84 in Q2 2017.

Meanwhile, the firm witnessed a 1% YoY increase in its half-year revenue to RM5.5b.

Profit attributable to shareholders plunged 72% YoY to RM$222.34m in H1 whilst earnings per share fell to $2.19 from $9.55. 

Parkway Pantai’s revenue grew 3% YoY to $588.08m in Q2 on the back sustained organic growth from its existing operations, the continued ramp up of its hospitals in Malaysia, and higher contribution from Gleneagles Hong Kong Hospital.

Inpatient admissions for Parkway Pantai’s hospitals in Singapore hospitals rose 0.4% YoY to 19,021, driven predominantly by local patients as well as foreign patients from non-traditional markets such as Vietnam. Average revenue per inpatient admission increased 8.8% to $10,133.

For its Malaysia operation, Inpatient admissions slipped 2.8% YoY to 47,985 in Q2 due to the additional public holidays declared following the general election. However, revenue intensity increased 8.4% YoY to $2,226 with the hospital taking more complex health cases.

The segment’s India inpatient admissions fell 5.5% YoY to 16,242 whilst revenue inched up 9.5% to $2,637 on the back of corresponding improvement in case mix.

Meanwhile, private healthcare provider Acibadem Holdings in which IHH Healthcare holds 60% of stake was hit by a revenue decrease of 17% to $262.58m amidst stronger Ringgit currency.

For IMU Health, the firm saw a revenue slip of 5% YoY to $21.46m due to lower intake of students.

PLife REIT’s external revenue dipped 4% YoY to $11.03m mainly due to the stronger Ringgit against the Singapore Dollar upon the translation of its results. It has armed with a portfolio of 50 healthcare-related properties as of June.
According to the firm, they will continue to target on improving its service offerings and building its Centres of Excellence, especially in high acuity services, to drive revenue intensity across all its hospitals.

“It will also ramp up newer hospitals to further optimise operating leverage, consolidate acquired assets and prepare for the progressive opening of its slate of greenfield and expansion project,” the firm noted.