NETCARE: 2,588 -93 (-3.47%)
South African hospital operator Netcare boosted by domestic market
(Adds detail, background)
May 14 (Reuters) - Netcare, South Africa's
second-largest private hospital operator, reported an 8.5
percent rise in half-year earnings on Monday, citing a strong
domestic performance and its exit from the UK.
The company said that the South African healthcare market
has returned to growth and it expects demand for private
healthcare to remain resilient over the medium to longer term
because of an ageing population.
Adjusted diluted headline earnings per share (EPS) from
continuing operations, the main results metric in South Africa,
rose to 87.7 cents for the six months to March 31 and the
company increased its interim dividend to 44 cents from 38 cents
Netcare has been in Britain for a decade through a
controlling stake in BMI Healthcare but said in March that it
would exit the UK because of difficult trading conditions and
belt-tightening by the UK's National Health Service.
In South Africa, meanwhile, Netcare registered a 3.5 percent
rise in patient days, which represent customer stays in its
hospitals. That helped to lift cash generation in its home
market to nearly 33 percent.
The growth in patient days is expected to continue into the
second half, Netcare said, but at a slower rate than in the
Half-year group revenue rose 8.2 percent to 9.97 billion
Netcare also said that regulators approved its purchase of
Akeso Clinics, a network of 12 dedicated mental healthcare
(Reporting by Sangameswaran S in Bengaluru
Editing by David Goodman)
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