November 14, 2019 / 7:17 AM / a month ago

Mediclinic International reports 4% rise in first-half profit

JOHANNESBURG (Reuters) - Mediclinic International Plc (MEIJ.J) (MDCM.L) reported a 4% rise in half-year core earnings on Thursday as the company’s Swiss business adjusted to regulatory changes and its South African and Middle Eastern operations performed well.

FILE PHOTO: The Mediclinic logo is seen in Dubai, UAE February 28, 2017. REUTERS/Ahmed Jadallah

The private healthcare group, listed in London and Johannesburg, said earnings before interest, tax, depreciation and amortisation (EBITDA) rose to £222 million from £213 million a year earlier.

Revenue rose around 9% in the six months ended Sept. 30, as it adapted to stricter regulations in Switzerland that had hobbled growth and put pressure on margins.

“The Group delivered a solid first-half financial performance with all three divisions growing revenue, EBITDA and patient volumes,” said Chief Executive Ronnie van der Merwe.

“I am pleased with the progress we have made in adapting the business to current healthcare trends and changing regulatory environments, especially at Hirslanden in Switzerland.”

Hirslanden, the Swiss business that accounts for 47% of group revenue, reported a 5% rise in revenue. The division has had to adjust to regulatory changes including tariff reductions for outpatients and a less favourable insurance mix.

Revenue from Mediclinic Southern Africa, which comprises South Africa and Namibia, rose 7%, helped by an additional day case clinic opened in Stellenbosch, South Africa, in June.

Revenue at the company’s Middle Eastern unit rose by 8%, helped by the ramp-up of Mediclinic Parkview Hospital in Dubai and improvement in its Abu Dhabi business.

Mediclinic shares were up 0.07% at 72.55 rand as of 0814 GMT.

Founded in South Africa in 1983, Mediclinic runs 78 hospitals, five sub-acute hospitals, 13 day case clinics and 22 outpatient clinics.

Reporting by Naledi Mashishi; editing by Mark Potter and Jason Neely

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