Mediclinic half-year profit jumps, revenue guidance lifted

Private hospital group Mediclinic reported a jump in half-year profit on Thursday as revenues returned to pre-pandemic levels at all of its divisions and the group upgraded its revenue guidance.

In the six months to 30 September, pre-tax profit rose to £91m from £17m in the same period a year ago, with revenue up 12% to £1.58bn. The company said revenue was driven by a strong recovery in patient volumes, which exceeded pre-pandemic levels at Hirslanden and Mediclinic Middle East.

The group EBITDA margin rose to 15.8% from 12.1%, returning towards pre-pandemic levels.

Given the "encouragin" revenue performance in the first half, Mediclinic said it now expects to deliver FY22 revenue growth ahead of previous guidance at all three divisions, while maintaining FY22 margin guidance.

"However, we remain alert to the ongoing pandemic and potential subsequent waves which provide an element of uncertainty as to near-term operating performance and the shape of the recovery," it said.

Chief executive officer Dr Ronnie van der Merwe said: "Naturally, the pandemic impacted each region in which we operate differently and, accordingly, the speed and nature of their recoveries have also varied. In Southern Africa, due to the more sustained and severe third wave, we continued to treat a significant number of Covid-19 patients in this period, while maintaining our broad healthcare service offering.

"With less severe waves impacting admissions, Hirslanden and Mediclinic Middle East increased patient volumes, exceeding pre-pandemic levels. Mediclinic Middle East was also notable for its continued margin improvement which resulted in the divisions EBITDA exceeding pre-pandemic levels."