Mediclinic revenue flat in constant currency terms

(iStock)
(iStock)

Cape Town - 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.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
16.46
(+0.27)
ZAR/GBP
21.30
(+0.39)
ZAR/EUR
19.47
(-0.17)
ZAR/AUD
11.61
(+0.31)
ZAR/JPY
0.16
(+0.30)
Gold
1910.13
(+0.39)
Silver
24.75
(+5.80)
Platinum
875.00
(+2.51)
Brent Crude
42.85
(-0.67)
Palladium
2405.50
(+3.21)
All Share
55271.75
(+0.20)
Top 40
50851.62
(+0.22)
Financial 15
9956.35
(-0.22)
Industrial 25
75567.07
(+1.08)
Resource 10
53788.16
(-0.63)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
33% - 19 votes
No, I did not.
41% - 24 votes
My landlord refused
26% - 15 votes
Vote