IHH sees impetus for growth from regional hospitals in HK,Turkey

KUALA LUMPUR: IHH Healthcare Bhd (IHH) saw higher revenue for the second quarter of 2017 (2Q17) thanks to higher contributions from its arkway Pantai and Acibadem hospitals, driven by organic growth from its existing operations, and the continuous ramping up of Gleneagles Hong Kong Hospital and Acibadem Altunizade Hospital since their opening in March 2017.

Its earnings before interests, tax, depreciation and amortisation (EBITDA) fell due to accruals for professional fees in relation to potential acquisitions and the ramp-up of hiring and pre-operating costs to prepare Gleneagles Hong Kong Hospital and Acibadem Altunizade Hospital as well as higher operating and staff costs. Excluding RM241 million gains from divestment of Apollo Hospitals, researchers with Kenanga Investment Bank Bhd (Kenanga Research) saw that core profits after tax and minority interests (PATAMI) came in at RM86.2 million -- a drop of 51 per cent -- dragged down by exchange loss on net borrowings and incremental depreciation, amortisation and finance costs with the opening of the two new hospitals in March 2017.

“Year on year, 1H17 revenue grew 10 per cent due to high intensities in patient volume and revenue of existing operations, and organic growth of existing operations and the continuous ramp-up of the hospitals.