Cape Town - Mediclinic International [JSE:MEI] said on Wednesday it expects to deliver adjusted financial results for the year marginally ahead of expectations, with a significant second half improvement from the Middle East division.
The international private healthcare services group said in constant currency, revenue for the year to end-March 2018 is expected to be up around 2% and adjusted ebitda (earnings before interest, taxes, depreciation and amortisation) flat on the prior year.
However, after the translation effect of foreign currency movements, full year revenue is expected to be up around 4% at £2.9bn compared with £2.7bn reported in the first half of the year. Adjusted ebitda is expected to be up around 3% at £0.5bn.
Mediclinic currently has a 29.9% investment in Spire Healthcare Group.
The group said, "the investment in Spire is accounted for on an equity basis recognising the reported profit after tax of £16.8m for Spire’s financial year ended 31 December 2017 (31 December 2016: £53.6m)".
Adjusted earnings per share, impacted by the equity accounted share of reported profit after tax from UK-based Spire Healthcare Group, is expected to be broadly flat on the prior year (FY17: 29.8 pence).
Mediclinic International CEO Danie Meintjes said the group succeeded with the turnaround of the Abu Dhabi business and laid the foundation for long-term, sustainable performance.
Mediclinic said the Southern African division delivered second half revenue growth ahead of expectation with a stable ebitda margin for the year.
In its Middle Eastern clinics there is strong performance in Dubai and an improvement in business in Abu Dhabi.
For the 2019 financial year the revenue in the Middle East is expected to increase into the lower double digits.
Mediclinic shares were trading at R11.23c per share on Wednesday afternoon at 13:14 up 5.23%.* SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.