IHH Healthcare reverses loss with $77m profits in Q3

Contributions from recently-acquired hospitals boosted its growth.

IHH Healthcare's headline profits after tax and minority interests (PATMI) hit $77.34m (RM236.3m) in Q3, reversing a $34.07m (RM104.1m) loss from the previous corresponding quarter. Revenue jumped 33% to $1.24b (RM3.79b) over the same period.

The company attributed this growth to contributions from Gleneagles Hong Kong Hospital and Acibadem Altunizade Hospital, as well as from Amanjaya Specialist Centre and Fortis Healthcare.

However, excluding exceptional items, PATMI crashed 35% YoY to $66.21m (RM202.3m), from additional loans taken for buying Fortis, working capital and swapping of Acibadem’s non-Lira loans to Lira loans upon refinancing, as well as the adoption of MFRS 16 Leases at the start of 2019.

For 9M 2019, headline PATMI jumped to $167.18m (RM510.8m) from $38.72m (RM118.3m) in the previous corresponding period, but slipped 8% to $206.46m (RM630.8m) excluding exceptionals. Revenue leapt 33% to $3.63m (RM11.08b) over the same period.

In Singapore, IHH’s earnings before interest, tax, depreciation and amortization (EBITDA) grew 19% whilst revenue rose 11%, partly attributed to a continued improvement in patient case mix. For its Malaysia operations, earnings rose 19% whilst revenue jumped 20% partly from admitting more complex cases.

In India, operations posted revenue of $286.61m(RM875.7m) and an EBITDA of $41.34m (RM126.3m), with the group consolidating results from the recently-acquired Fortis. Over in Turkey and CEEMENA (Central and Eastern Europe, the Middle East and North Africa), revenue was flat whilst EBITDA leapt 33% from the growth of its existing hospitals and healthcare business.