IHH Healthcare has posted earnings of RM310.0 million ($101.7 million) for the 3QFY2020 ended September, reversing from its net loss of RM120.6 million in 2QFY2020.
This translates to basic earnings per share (EPS) of 3.28 sen for the quarter, compared to EPS of 2.44 sen a year ago.
Y-o-y, the group, which counts Singapore-based Parkway Pantai and Gleneagles Hospital under its portfolio, registered a 31.1% growth, from the earnings of RM236.3 million in 3QFY2019.
The growth, according to the group, was attributable to the operational recovery and realisation of a one-off foreign currency translation reserve of RM193.5 million upon the substantive liquidation of IHH (Bharat).
3QFY2020 revenue fell 7% y-o-y to RM3.5 billion as local patients, including elective cases, returned “in strength” despite international travel restrictions.
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Earnings before interest, taxes, depreciation, and amortization (EBITDA) remained relatively flat at RM832.7 million despite the lower revenue due to tight cost control as well as government grants and reliefs.
9MFY2020 revenue and EBITDA declined 13% and 24% y-o-y respectively due to the impact of Covid-19 primarily seen in 2QFY2020’s figures.
For the 9MFY2020, the group registered a net loss of RM130.5 million compared to earnings of RM510.8 million in the year before.
IHH says it has seen a recovery in occupancy in its home markets to between 50% and 65% in 3QFY2020, which stands at about 70% to 90% of its pre-Covid-19 levels.
The group says it will continue to create new revenue streams through new service offerings, as well as apply strict cost controls and cash and forex management.
Looking ahead, the group remains optimistic of a progressive recovery. It adds that it is encouraged that patient recovery have recovered strongly since June.
In the short term, however, it expects to see continued impact from the Covid-19 pandemic, especially if there are continued disruptions from subsequent outbreaks and fresh lockdowns.
It adds that it remains in a “strong financial position with ample liquidity and cash flow, even post-acquisition of PCMC” and is “well-prepared” to ride out the pandemic.
In Malaysia, revenue fell 4% y-o-y but grew 33% q-o-q to RM578.9 million amid the return of local patients.
See:'Better quarters ahead' for IHH Healthcare: CGS-CIMB
In Singapore, revenue fell 8% y-o-y but climbed 24% q-o-q to RM1.0 billion thanks to the return of local patients since the lifting of the circuit breaker measures in June 2020.
Its operations in Turkey and Central and Eastern Europe saw marginal improvement in its revenue of RM922.7 million, up 1% y-o-y and up 50% q-o-q. The higher numbers were due to the return of its domestic and foreign patients.
In India, revenue fell 21% y-o-y but grew 67% q-o-q to RM694.4 million on the return of local patients and the treating of Covid-19 patients.
IMU Health’s revenue fell 16% y-o-y to RM54.0 million mainly due to the changes in its academic calendar owing to Covid-19 disruptions.
Parkway Life REIT’s external revenue grew 10% y-o-y to RM38.9 million due to rent contribution from properties acquired in 4QFY2019.
Shares in IHH closed flat at $1.82 on Nov 26.
