October 16, 2019 / 7:18 AM / a month ago

UPDATE 1-Mediclinic International sees higher first-half core profit

(Adds details on segment results, share price)

Oct 16 (Reuters) - Mediclinic International Plc said on Wednesday it expects higher first-half core earnings, as the healthcare company’s Swiss business adjusted to regulatory changes and its Southern Africa and Middle East operations performed well.

The group, which is listed in London and Johannesburg, said reported revenue for the six months ended Sept. 30 was about 9% higher, and earnings before interest, tax, depreciation and amortization (EBITDA) before new accounting rules was up about 5%.

Mediclinic has faced stricter regulations in Switzerland that have hobbled growth and put pressure on margins. These include tariff reductions for outpatients and a less favourable insurance mix.

Hirslanden, the Swiss business that accounts for almost half of the company’s revenue, saw revenue rise about 5%, helped by higher patient admissions.

“Hirslanden has continued to make good progress in adapting the business to the regulatory changes affecting the Swiss healthcare system. Performance during the first six months of the financial year was in line with expectations,” Mediclinic said.

Revenue from Mediclinic Southern Africa, which comprises South Africa and Namibia, rose about 7%, while the company’s Middle East unit was helped by the ramp-up of Mediclinic Parkview Hospital in Dubai and a gradual improvement in the Abu Dhabi business.

Mediclinic, which was founded in South Africa in 1983, runs 78 hospitals, five sub-acute hospitals, 13 day case clinics and 22 outpatient clinics.

The company’s London-listed shares were 1.9% higher at 365.1 pence in early trade. (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Shounak Dasgupta)

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