Mediclinic's revenue ticks up as it battles pandemic second wave

0:00
play article
Subscribers can listen to this article
Mediclinic Morningside, Johannesburg
Mediclinic Morningside, Johannesburg
Gallo Images/Sharon Seretlo

As South Africa's hospitals buckle under the pressure of Covid-19 cases amid a second wave of infections, private group Mediclinic has reported a 2.5% revenue increase. 

Earnings, however, fell by 8%.

On Friday, the group released its trading update for the third quarter between October and December 2020, which showed an uptick in revenue compared to the third quarter of 2020.

Like its peers in the private healthcare sector, Mediclinic has seen a decline in demand for elective surgeries like cataract removals and hip replacements during the first wave of the pandemic as patients opted to put these on hold to avoid infection.

The group’s Southern Africa operations include its local facilities and others in Namibia. It also has divisions in Switzerland and the UAE, as well as a 29.9% stake in Spire Healthcare Group in the UK.

"Unlike early in the first wave, there have not been national restrictions on elective procedures and outpatient activity during Q3. Our ability during the period to continue with elective procedures, when and where we have capacity, as well as the unseasonable demand for our inpatient services in Southern Africa and the UAE during December 2020, supported our Q3 financial performance," said Mediclinic’s group CEO Dr Ronnie van der Merwe.

The group explained that it continued to face second wave challenges in Southern Africa, which impacted on its ability to provide non-urgent elective care. Most of its Covid-19 patients are in the Western Cape, KwaZulu-Natal, Mpumalanga, Limpopo and Gauteng, while admissions in the Western Cape begin stabilising.

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
USD/ZAR
14.22
(-0.7)
GBP/ZAR
19.90
(+0.4)
EUR/ZAR
17.12
(-0.2)
AUD/ZAR
11.03
(-0.4)
JPY/ZAR
0.13
(-0.2)
Gold
1,770.94
(-0.3)
Silver
25.82
(-0.6)
Platinum
1,208.50
(+0.4)
Brent Crude
66.77
(-0.3)
Palladium
2,816.06
(+1.3)
All Share
68,094
(-0.9)
Top 40
62,326
(-0.9)
Financial 15
12,417
(-0.2)
Industrial 25
88,303
(-1.2)
Resource 10
69,786
(-0.8)
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
21% - 1282 votes
No, I did not.
52% - 3191 votes
My landlord refused
28% - 1715 votes
Vote