Mediclinic forecasts strong UAE revenue growth after shake-up

Healthcare provider says Middle East revenues expected to rise faster in second half of 2017
By Staff writer
Tue 17 Oct 2017 01:11 PM

Mediclinic International, the combination of the biggest private healthcare providers in South Africa and Abu Dhabi, said on Tuesday it expects to post a 5 percent rise in first-half earnings, underpinned by currency gains.

Underlying EBITDA (earnings before interest, tax, depreciation and amortisation) is expected to grow to £231 million, up from £220 million, following a 9.5 percent rise in revenue, the London-listed company said in a statement.

In constant currency terms, however, the company said EBITDA would fall by around 5 percent on flat revenue.

"The Middle East business has started the financial year well following the positive operational and regulatory changes in Abu Dhabi," said chief executive Danie Meintjes.

"We expect the Middle East business to generate strong sequential and comparative revenue growth and underlying Ebitda margin expansion in the second half of the financial year.

In Switzerland and Southern Africa, Meintjes said patient volumes in the first half of the year were down on the prior year period, impacted by the timing of the Easter holiday period.

"The management teams in both platforms have implemented the appropriate cost savings programmes and productivity initiatives that will help margins during the second half of the year," he added.

Earlier this year, Mediclinic said it is lobbying the Abu Dhabi government to rethink a change in medical insurance rules that has damaged its business after it bet big on acquiring Al Noor Hospitals.

Mediclinic, which has 73 hospitals and 43 clinics across South Africa, Namibia, Switzerland and the UAE, bought Al Noor last year for $2.2 billion.

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