Thomson posts $3.52m Q2 profit

Reversal from loss for year-ago period comes as revenue rises 21%

HIGHER revenue from hospitals and contributions from two new medical centres helped Thomson Medical Centre earn a net profit of $3.52 million for its second quarter ended Feb 28, reversing the $926,000 net loss chalked up in the same period last year.

Revenue jumped 21 per cent to $18.87 million, on the back of strong performances by hospital operations and ancillary services, and specialised and other services.

For the first six months, net profit surged 266 per cent to $7.05 million on a 17.7 per cent rise in revenue to $37.66 million. Q2 earnings per share rose from 1.05 cents to 1.21 cents per share.

The top line was bolstered by contributions from Thomson Paediatric Centre (TPC), which opened on Jan 1 this year, and Thomson Women’s Cancer Centre (TWCC), which opened in February 2009. ‘We expect TWCC and TPC to be future growth drivers,’ said group chief executive Allan Yeo.

A Q2 8.3 per cent increase in the number of babies delivered helped boost revenue from hospital operations and ancillary services.

‘Our hospital operations currently have about a 70 per cent occupancy rate,’ said Mr Yeo. ‘We still have the capacity to increase our occupancy levels. We will also continue to look for ways to manage bed utilisation more effectively.’

Two more operating theatres and two delivery suites will be added to cater for more operating procedures and deliveries.

A higher patient load at the Family Clinic and Thomson Lifestyle Centre enhanced Q2 revenue from outpatient services by 8.6 per cent.

Mr Yeo said Thomson will continue to expand its network of satellite women’s clinics and specialised centres here.

Thomson is paying an interim dividend of 1.2 cents per share, which will be paid out on May 7. Its shares closed unchanged at 69.5 cents in trading yesterday.

Thomson also said yesterday in an announcement to the Singapore Exchange that its consultancy and management project in Vietnam, Hanh Phuc International Women and Children Hospital, has been delayed. The soft opening will now take place in September this year.

Thomson Medical Centre’s H1 net profit up 22% to S$7.2m

Thomson Medical Centre on Thursday said its half-year profit rose 22 per cent on-year to S$7.2 million.

Revenue for the six months to February rose about 18 per cent to some S$38 million.

Thomson Medical said the improvement in its performance was driven by higher deliveries, inpatient admissions and demand for outpatient services.

It also saw higher revenues from its Thomson Women’s Clinics, Thomson Women Cancer Centre and Thomson Paediatric Centre.

Going forward, Thomson Medical sees its growth drivers coming from its satellite clinics, and new paediatric and women’s cancer centres.

On the regional front, the soft opening of its hospital consultancy and management project in Vietnam’s Binh Duong Province has been delayed to September.

But Thomson Medical said the delay will not affect its financial results this year.

The Group said its second hospital consultancy project in Hanoi, Vietnam, will commence once a suitable site has been identified.

Allan Yeo, group chief executive, said: “We will probably be one of the so-called chain of hospitals for women and children, probably one of the larger chains, and we intend to bring our expertise with us to Vietnam, and to work with our Vietnam partner to look at the local culture, and to deliver the best of both worlds.”

In the second quarter, Thomson Medical’s net profit rose 19.1 per cent to S$3.64 million on revenues of S$18.9 million.