IHH Healthcare saw its revenue for Q3 increase 3% year-on-year as more local and foreign patients returned. The ramp-up of Gleneagles Hong Kong Hospital and contribution from General Hospital Acibadem Bel Medic and Ortopedia Hospital in Turkiye also played a part it said.
The groups EBITDA however, decreased 9% due to a high base in Q3 2021 that saw valuation gains on investment properties of RM65.2 million, as well as from a weaker Lira affecting contributions from Turkiye operations and MFRS 129-related adjustments in Q3 2022. Net Operating Income also decreased 11% to RM315.4 million due to lower EBITDA, higher finance costs and higher depreciation and amortisation from MFRS 129-related adjustments. Excluding the effects of MFRS 129-related adjustments, Net Operating Income increased 6% to RM374.2 million.
Net Income was impacted and declined 54% to RM251.8 million. IHH said this was due to gains from exceptional items recognised in Q3 2021 such as an increase in deferred tax assets of RM248.2 million, coupled with the effect of MFRS 129-related adjustments and foreign exchange losses in Q3 2022. Excluding the effects of MFRS 129, Net Income decreased 39% to RM338.1 million
As for the cumulative nine months, revenue increased 4%, while EBITDA decreased 6% mainly due to a high base a year ago and MFRS 129-related adjustments. Net Income was down 4% to RM1.4 billion, while Net Operating Income decreased 10% to RM1.0 billion due to the lower headline performance and MFRS 129-related adjustments.
Commenting on the performance, CEO Dr Kelvin Loh said our headline profits decreased by 54% due to a high base in Q3 2021 that saw a recognition of higher deferred tax assets of RM248.2 million. This was coupled with higher depreciation and amortisation due to MFRS 129-related adjustments and foreign exchange losses in Q3 2022.
However, our core operating performance improved. Like-for-like, Net Operating Income for Q3 2022 improved 6% to RM374.2 million and revenue was up 4% as we pivoted well out of the pandemic. We expect inpatient volumes and bed occupancy to grow as we enter a post-COVID world and are taking steps to ensure our operations can cater for this demand in our core business. The Group’s long-term growth trajectory remains positive, underpinned by favourable healthcare megatrends and our robust financial position.