* Posts net profit of 250 mln roubles vs 728 mln a year ago
* Hike in payroll, other expansion related costs weigh
MOSCOW, Sept 9 Russian private healthcare
company MD Medical Group said first-half net profit
fell 66 percent due to a hike in costs related to its expansion.
Russia's private healthcare sector, boosted by a growing
middle class and private medical insurance, is emerging as a
competitor to the ailing system of public hospitals and clinics
that often fail to meet demand for quality services.
MDMG, which specialises in women's healthcare, was the first
Russian company in the sector to float, raising more than $300
million in the London share sale in October last year to expand
its clinics chain.
It earned 250 million roubles ($7.50 million) in
January-June, down from 728 million roubles in the same period
of 2012, the company said in a statement.
More deliveries in its new Lapino hospital outside Moscow
and acquisitions of clinics helped drive revenue up 31 percent
to 2.6 billion roubles, but the total cost of sales and
administrative expenses rose 63 percent and 173 percent,
The costs rose because of an increase in payroll and
materials and supplies expenses due to a ramp-up of the Lapino
hospital and acquisition of two clinic chains in Samara and
The company manages a total of 16 healthcare facilities,
including two hospitals and 14 outpatient clinics, and has begun
construction of a third hospital, in Ufa.
Its shares trade at $14, up from their issue price of $12.