MD Medical Group announces operating results for Q3 2022

31 October 2022 – MD Medical Group Investments Plc (“MD Medical Group”, “MDMG”, “Group” or the “Company”; LSE and MOEX: MDMG), a leading Russian private healthcare provider, today announces its operating and unaudited financial results for the third quarter of 2022.

Key financial highlights for Q3 2022:

  • Total revenue increased by 3.3% year-on-year (y-o-y) to RUB 6,444 million.

  • Like-for-like (LFL) revenue gained 1.6% y-o-y.

  • Revenue of the Group’s hospitals in Moscow decreased by 2.8% y-o-y to RUB 3,375 million due to fewer deliveries in Moscow amid overall downward trend in Russia’s birth rate.

  • Revenue of the Group’s regional hospitals grew by 16.1% y-o-y to RUB 1,660 million thanks to the strong operational performance of the medical cluster in Tyumen[1], target utilisation rates achieved at IDK hospital in Samara and Avicenna hospital in Novosibirsk, as well as the solid results of MD Group Lakhta hospital.

  • Revenue from out-patient clinics in Moscow and the Moscow Region rose by 6.0% y-o-y to RUB 642 million.

  • Revenue of the Group’s clinics in other regions dropped by 5.7% y-o-y to RUB 764 million due to the gradual utilisation of IVF quotas covered by the Mandatory Health Insurance (MHI) programme in some regions of the Russian Federation, along with the growing numbers of in-patient days.

Key operational highlights for Q3 2022:

  • Total out-patient treatments increased by 0.5% y-o-y to 463,651, with the average ticket up 14.3% to RUB 5.4 thousand in Moscow and up 3.8% y-o-y to RUB 2.2 thousand in other regions.

  • Total in-patient treatments went up by 12.4% y-o-y to 38,755, with the average ticket up 5.8% to RUB 98.4 thousand in Moscow and down 7.6% y-o-y to RUB 31.7 thousand in other regions.

  • Total IVF cycles remained flat at 4,213, with the average ticket increasing by 8.6% to RUB 280.0 thousand in Moscow and by 5.9% y-o-y to RUB 241.4 thousand in other regions.

  • Total deliveries increased by 7.8% y-o-y to 2,413, with the average ticket rising by 0.5% y-o-y to RUB 474.5 thousand in Moscow and by 13.4% y-o-y to RUB 184.6 thousand in other regions.

Key events during Q3 2022 and after the reporting period:

  • Opening of MGIMO Med University. On 1 September 2022, MD Medical Group jointly with the Moscow State Institute of International Relations (MGIMO) opened MGIMO Med, a medical university.

  • Bank loan repaid early. Between July and October 2022, MD Medical Group completed early repayment of outstanding liabilities under a loan of RUB 2,729 million raised to build hospitals in Samara and Moscow.

  • Dividends for H1 2022. On 26 October 2022, the Board of Directors approved an interim dividend of RUB 642,318,835.50 or RUB 8.55 per ordinary share / GDR for 6M 2022.

Key financial highlights for 9M 2022:

  • Total revenue increased by 2.0% y-o-y to RUB 18,603 million.

  • Revenue of the Group’s Moscow hospitals decreased by 3.8% y-o-y to RUB 9,730 million due to a lower utilisation rate at the Lapino-4 COVID treatment facility.

  • Revenue of the Group’s regional hospitals grew by 13.7% y-o-y to RUB 4,747 million.

  • Revenue from out-patient clinics in Moscow and the Moscow Region rose by 10.8% y-o-y to RUB 1,923 million.

  • Revenue of the Group’s clinics in other regions dropped by 0.6% y-o-y to RUB 2,194 million due to the late allocation of IVF quotas covered by the Mandatory Health Insurance (MHI) programme in some regions of the Russian Federation in H1 2022. This effect was partly offset by an increase in MHI revenue in Q3 2022. The remaining quotas will be used in Q4 2022.

Key operational highlights for 9M 2022:

  • Total out-patient treatments decreased slightly, by 1.2% y-o-y to 1,342,109.

  • Total in-patient treatments decreased by 1.5% y-o-y to 109,692.

  • Total IVF cycles increased by 0.5% y-o-y to 12,436.

  • Total deliveries increased by 4.1% y-o-y to 6,522.

Mark Kurtser, CEO at MDMG, said:

“We are pleased with the Company's strong performance in Q3 2022. Despite the volatile macroeconomic environment, we continue to streamline business efficiency to deliver solid operational results in the reporting period.

“I am particularly happy about the robust performance of the regional hospitals, which saw their revenue grow by 16%. Among other things, our results in women's and children's healthcare continue to improve, with a strong increase of 50% in the revenue from deliveries in Q3 2022. This outstanding performance in deliveries was partly driven by the successful launch of core operations at our MD Group Lakhta hospital in St Petersburg, and impressive results of the Tyumen-1 multidisciplinary hospital with a 30% growth in terms of deliveries.

“Our clinical hospitals in Samara and Novosibirsk are on track to reach their respective design capacities as expected. For example, at the end of Q3, the IDK multidisciplinary hospital in Samara reached a utilisation rate of 73%, while Avicenna hospital in Novosibirsk hit a 71% utilisation rate.

“We continue to stick to our key priorities – improving the quality and range of services we offer, boosting operational efficiency, and achieving growth in Russian regions. For example, in November we are launching an out-patient clinic in Yekaterinburg with a focus on IVF cycles. This will enable us to provide residents of the Sverdlovsk Region with access to our hi-tech medical care.

“To sum it up, I would like to emphasise that our financial performance remains stable as a result of effective liquidity management and the Net Cash position we have built up. In line with our previous statements, we continue to share our success with shareholders, as the Board of Directors has approved an interim dividend payment of RUB 642 million for 6M 2022.”


1.     Data is based on management accounts

2.     Minor variations in calculation of totals, subtotals and/or percentage change are due to rounding of decimals


About MD Medical Group

MD Medical Group is a leading provider in the highly attractive Russian private healthcare service market. Today, the Company manages 50 state-of-the-art healthcare facilities, including 10 multidisciplinary hospitals and 40 out-patient clinics in 25 regions of the Russian Federation. In 2021, MD Medical Group’s revenue amounted to RUB 25.2 bln, with EBITDA of RUB 8.3 bln. The Company’s global depositary receipts are traded on the London Stock Exchange (LSE: MDMG) and Moscow Exchange (MOEX: MDMG). 

[1] The Tyumen medical cluster includes the Tyumen-1 multifunctional hospital and the Tyumen-2 COVID treatment facility.

This announcement contains inside information.
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