The acquisition of Al Noor Hospitals led underlying earnings per share (EPS) at its parent company Mediclinic International to fall by 26 per cent for the first half of the 2016-17 fiscal year, even as revenues rose.
The South African healthcare provider, which acquired Al Noor Hospitals in February, said yesterday that underlying EPS stood at 12.8p for the six months to the end of September, compared with 17.2p for the same period last year.
Mediclinic shares, which are listed on the London Stock Exchange as well as on the Johannesburg Stock Exchange, fell by more than 9 per cent on the news, hitting an all-time low.
The company attributed the drop in EPS to shares issued as part of the Al Noor acquisition process. Delays in the opening new facilities (including Al Jowhara Hospital in Al Ain), unfilled doctor vacancies and the introduction of co-payments for Emirati patients in July also weighed on Al Noor’s earnings during the period.
Group revenue for the first half of the financial year rose by 27 per cent to £1.28 billion (Dh5.88bn), with Al Noor responsible for 16 per cent of total revenues.
Underlying earnings across the group were static at £94 million for the six-month period.
“In the Middle East, we have had a productive first half of the year, successfully opening the City Hospital North Wing in Dubai and business integration is progressing well,” said Danie Meintjes, the chief executive, in a statement.
“We continue to believe in the long-term growth opportunity the Middle East presents to the Group.”
The Al Noor acquisition led Middle East revenues to more than double to Dh1.5bn in the six months to September from Dh730m last year.
Mediclinic said it remains on track to generate annualised cost synergies of Dh75m from the combined Middle East platform with the material benefit being realised in the second half of the financial year.
jeverington@thenational.ae
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