- Thomson Medical (SGX:A50)'s 1HFY25 results were below expectations. 1HFY25 revenue and EBITDA were 41% and 32% of our forecast, respectively.
- Thomson Medical reported a net loss of S$12.9mil, dragged down by a 90% collapse in Malaysian earnings and a 50% rise in finance costs.
- - Read this at SGinvestors.io -
The Positive
Signs of recovery in Singapore.
- Excluding pandemic-related project revenue of S$9mil, the EBITDA for Singapore would have risen by 13.6% to S$22.5mil. Post disruptions from renovation work in Thomson Medical Hospital, inpatient volumes have recovered to 9,236 (2HFY24: 8,380).
- - Read this at SGinvestors.io -
The Negative
90% Collapse in Malaysia earnings.
- The exit of two insurers in Thomson Hospital Kota Damansara (THKD) has negatively impacted volumes and margins. Without an insurance company, patients have to bear the cost out of pocket rather than cashless. THKD became reliant on an insurance company that demanded steep discounts. This collapsed THKD margins.
- Around 70% of inpatients use cashless insurance as a payment method. Insurance clawbacks also hit earnings.
Outlook
- Read more at SGinvestors.io.
