UPDATE 2-Medi-Clinic H1 profit falls, upbeat on year ahead

* Revenue up 71 percent

* Optimistic about prospects for year ahead * Profit hit by dilutive rights issue (Adds CEO analyst comments)

By Tiisetso Motsoeneng

JOHANNESBURG, May 19 (Reuters) - South African private hospitals group Medi-Clinic (MDCJ.J) posted a 23 percent dip in full-year headline earnings per share after a dilutive rights offer and said it was optimistic about the year ahead.

Medi-Clinic, which runs hospitals in South Africa, Namibia, Switzerland and the United Arab Emirates, said on Tuesday headline EPS was at 68.6 cents, in line with its own forecast for a fall of between 20-25 percent.

The company said its profits had not been squeezed by the global slowdown so far because people that were being laid off in its key markets had no medical insurance.

"People that are on medical schemes are not the first ones to lose jobs ... in fact patient attendance increased towards the end of financial year," Medi-Clinic Chief Executive Officer Louis Alberts told Reuters in a phone interview.

The number of patients making cash payments had dipped, as had the demand for niche or commodity services such as plastic surgery, said Lizelle Wentzel, an analyst at Frost & Sullivan.

"This is expected to be only a short-term limitation to growth, as healthcare services in general will always be required," she said.

The company said revenue rose 71 percent to 16.3 billion rand ($1.93 billion), boosted by a strong contribution from its Swiss and southern African units.

Demand for private healthcare has increased in Africa's biggest economy in recent years as a fast-growing middle class signs up for health insurance.

Medi-Clinic's closest rival Netcare (NTCJ.J) posted a 41 percent rise in half-year profits boosted by an asset sale this week and said it expected strong demand in South Africa in the second half.

Medi-Clinic said it was optimistic about its operational prospects in the year ahead and did not expect the dilutive effect of the rights issue to recur.

The company, which operates two hospitals and five clinics in Dubai, plans to build one more clinic there, said Alberts.

"The clinic is still in planning stages ... but we hope to have it done by the end of the (fiscal) year," he said.

Shares in Medi-Clinic closed 0.50 percent lower at 19.80 rand, lagging a 3.03 percent rise to 9.72 rand in rival Netcare. (Editing by Rupert Winchester)