KUALA LUMPUR: IHH Healthcare Bhd’s net profits jumped by 29 per cent RM316.56 million for the second quarter ended 30 June 2017, from the RM246.09 million recorded in the same period last year.
Revenue for the quarter also increase by 12 per cent to RM2.77 billion from RM2.47 billion a year earlier.
The group attributed net profits jump to a one-off gain of RM241.1 million, during the quarter, from the divestment of its non-core minority stake in Apollo Hospitals in May.
It noted however that its core net profit fell 54 per cent to RM86.2 million due to higher depreciation, amortisation and finance costs following the opening of two new hospitals in Hong Kong and Istanbul in March.
Revenue growth, however, was due to sustained growth in inpatient admissions and revenue contribution across all home markets and the ramp-up of new hospitals.
"We delivered topline growth across all markets despite a challenging operating environment by keeping a relentless focus on core operations while actively rebalancing assets in our portfolio,” said IHH managing director and chief executive officer Dr Tan See Leng in a statement.
"We are pleased that our two newest hospitals, which will be growth drivers as they ramp up, are already contributing to revenue.”
Going forward, the group is enthusiastic of the next phase of growth in Greater China, which will subsequently be IHH's fifth home market after Malaysia, Singapore, Turkey and India.