Mediclinic revenue flat in constant currency terms
Mediclinic reported revenue that was flat in constant currency terms for the six months ended September 30 2017. Revenue was up 10% to £1 405m. Underlying earnings before interest, taxes, depreciation, and amortisation (Ebtida) were up 5% to £232m – a decreased of 5% in constant currency terms.
Underlying operating profit was up 3% to £161m. Reported operating profit was down 21% at £133m, impacted by exceptional items.
Underlying earnings were down 11% to £84m, reflecting lower income from associates.
There was a reported loss of £50m as a result of the Spire equity investment impairment charge and other exceptional items.
Underlying earnings per share were down 12% to 11.3 pence. Excluding the impact of Spire’s exceptional provision, underlying earnings per share were down 5% to 12.2 pence.
Cash conversion was at 91% of underlying EBITDA – in the first half of the 2017 financial year it was 104%.
An interim dividend was maintained at 3.20 pence per share.
Danie Meintjes, CEO of Mediclinic, said that given the variability of last year, Mediclinic has been encouraged by the positive operational trends in its Abu Dhabi business as it progressed through the first six months.
“Along with the strong performance from our established Dubai operations, I am confident that Mediclinic Middle East is on track to deliver a strong second half performance resulting in revenue growth and underlying EBITDA margin expansion for the year,” he said.
“In Switzerland and Southern Africa, patient volumes in the first half of the year were down on the prior year period, impacted by the timing of the Easter holiday. The management teams in both operating divisions have implemented the appropriate cost-saving programmes and productivity initiatives that should help margins during the second half of the year.”
In his view, Mediclinic has had a good start to the second half of the financial year, with current trading across all our operating divisions in line with its expectations.