IHH Healthcare Posts 53% Decline in Third-Quarter Net Profit

By Yantoultra Ngui Features Dow Jones Newswires

KUALA LUMPUR, Malaysia--Malaysian hospital operator IHH Healthcare Bhd. (5225.KU) said Monday that its net profit for the third quarter dropped 53% from a year earlier on higher depreciation, amortization and finance costs following the opening of new hospitals in Hong Kong and Istanbul in March 2017.

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Nevertheless, IHH said these costs were in line with expected start-up costs arising from the opening of the new hospitals. Net profit for the July-September period declined to 82.1 million ringgit ($19.9 million) from MYR173.3 million a year ago, IHH said.

Revenue climbed 15% to MYR2.8 billion from MYR2.4 billion a year earlier due to sustained growth in inpatient admissions, strong domestic revenue and the hospitals opened in March 2017, it added.

IHH, the world's second-largest health-care services firm by market value, said it expects to cost pressures on several fronts, including wage inflation from increased competition for talent.

Rising purchasing costs due to a stronger U.S. dollar and higher pre-operating and start-up costs from new operations also loom as challenges, the company said.

IHH said it will work to contain costs to mitigate these challenges.

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Shares of IHH ended 0.2% higher at MYR5.65 on Monday ahead of the results.

Write to Yantoultra Ngui at yantoultra.ngui@wsj.com.

(END) Dow Jones Newswires

November 27, 2017 05:18 ET (10:18 GMT)