IHH Healthcare revenue dips 10% in 2020

But shows recovery QoQ across all markets.

Malaysian-Singaporean private healthcare group IHH Healthcare Berhad’s revenue fell by 10% in FY 2020 but showed an upward trend QoQ across all markets. EBITDA also fell by 13% for the year.

In Q4 2020, revenue hit $1.24b (RM3.8b), a 2% YoY dip.

The decrease in revenue is attributed to the postponement of elective and non-urgent treatment amid COVID-19 pandemic and fall in foreign patient volumes as international travel restrictions remained.

QoQ, revenue for Q4 2020 was up by 7%. EBITDA and PATMI grew by 25% and 56%, respectively.

Despite the YoY decrease in revenue for Q4, the company saw its EBITDA rise to $327.8m (RM1b) in 2020, a 16% YoY increase from 2019. According to IHH Healthcare, this was mainly due to cost-cutting measures and revaluation gains on the REIT’s investment properties as well as receipt of government grants and reliefs.

Across the board, the healthcare group’s EBITDA grew specifically for its India, central and eastern Europe, and Hong Kong operations.

“Overall, the Group is encouraged that patient volumes have been recovering since June 2020. We remain optimistic of continued recovery even if there are short term headwinds. IHH has diversified earnings across 10 markets, giving it resilience as its markets are at different phases of the pandemic, with some able to contribute more while in recovery, while others experience a resurgence of COVID-19 with its appropriate movement restrictions,” the company said.