Namibia, South Africa lift Mediclinic’s revenue
The Mediclinic healthcare group reported this week Friday, its revenues of the financial year ended 31 March 2017, are up by R14.3 billion, backed in no small measure by the group’s growth in South Africa and Namibia.
While the group’s revenue from the Middle East came under pressure due to operational challenges following a take-over, its financial performance was saved by its operations in Switzerland, South Africa and Namibia.
Mediclinic has a primary listing on the Main Market of the London Stock Exchange with secondary listings on the Johannesburg Securities Exchange and the Namibian Stock Exchange in Windhoek.
The group’s revenue from its operations in Southern Africa is up by 7% to R14 367 million; underlying EBITDA is up 6% to R3 049 million with an underlying EBITDA margin of 21.2%, the group Chief Executive, Danie Meintjies said in the financial statements.
Expressed in Sterling, the group’s revenue went from 2107 million Pounds in 2016 to 2749 million Pounds in 2017. This constitutes a 30% growth.
The good profit was driven by a 0.8% rise in bed days sold and a 5.8% increment in the average revenue per bed day and the introduction of a 20% co-payment system in July 2016, Meintjies said.
Quoting from the financial results, Business Day in South Africa reported that a growing demand for healthcare services, despite a drop in revenue from Abu Dhabi, pushed up revenue.
Inpatient admissions fell by 4.8% and outpatient numbers fell by 9.7% mostly due to what Meintjies said is a growing disease burden and improved technological innovation. But in southern Africa, the group has seen substantial growth.
The acquisition of United Emirates operations by Al Noor Hospital Group in the Middle East for about £1.5 billion five month ago, Meintjies said, lead to business and operational challenges affecting volumes in Abu Dhabi.
“The Middle East, accounts for 24% of revenue,” Gryphon Asset Management portfolio manager, Reuben Beelders said indicating how big the impact from Middle East operations is to the performance of the whole group.
“I believe management have their work cut out for them in the Middle East. The low oil price is going to place growth under pressure,” Beelders said.
Mediclinic Southern Africa operates 49 hospitals and 2 day clinics throughout South Africa and 3 hospitals in Namibia with more than 8000 inpatient beds in total.