Edition:
United Kingdom

Netcare Says FY EBITDA Margins To Decline By Between 30-50 Bps


Thursday, 27 Sep 2018 

Sept 27 (Reuters) - Netcare Ltd ::TOTAL GROWTH IN PATIENT DAYS OF APPROXIMATELY 6.0 % IS EXPECTED FOR FY2018.GROWTH IN ACUTE HOSPITAL ACTIVITY REMAINED STRONG UP UNTIL JUNE 2018.ACUTE HOSPITAL ACTIVITY EXPERIENCED A DECLINE IN LAST QUARTER OF FY2018, IMPACTED BY GENERAL DOWNTURN IN SOUTH AFRICAN ECONOMY.FULL YEAR EBITDA MARGINS ARE EXPECTED TO DECLINE BY BETWEEN 30 AND 50 BASIS POINTS AGAINST PRIOR YEAR'S EBITDA MARGIN OF 21.1%.SAW DOWNTURN IN LOWER DEMAND FROM PRIVATE SELF-PAY PATIENTS DURING PERIOD.SAW DECLINE IN FOREIGN PATIENTS RESULTING FROM MORE STRINGENT CREDIT CONTROL MEASURES APPLIED TO THE PATIENTS DURING PERIOD.DIFFICULT TRADING CONDITIONS IN H2, HIGHER GROWTH IN PATIENTS FROM LOW COST HOSPITAL NETWORK OPTIONS, HAD IMPACT ON EBITDA MARGINS IN FY.