MD Medical Group Posts Strong Growth Across All Operational Indicators for 4q and FY 2016

MD Medical Group Investments Plc (“MD Medical Group”, “MDMG” or the “Company” – LSE: MDMG), a leading Russian private healthcare provider, today announces its operating results for the fourth quarter and 12 months of 2016.

Key operational highlights for FY 2016:

• Total deliveries increased 20% year-on-year (y-o-y) to 6,656
• Total IVF cycles increased 51% y-o-y to 14,004
• Total in-patient treatments increased 11% y-o-y to 53,142
• Total out-patient treatments increased 18% y-o-y to 1,388,995

Mark Kurtser, CEO of MD Medical Group, said:

“MD Medical Group ended 2016 as Russia’s leading private healthcare provider. We worked hard and this was reflected in our results, significantly growing all our key operational metrics. “

 

In 2016, we had 20% more deliveries than in 2015. We strengthened our leadership in the IVF market, with the number of IVF cycles rising by 51%. In-patient and out-patient treatments grew 11% and 18% year-on-year, respectively.

 

“These record results for the Company were to a significant extent achieved thanks to the continued ramp-up of our Lapino, Ufa and PMC hospitals. Growth in the IVF segment was largely driven by our new clinics in Siberia[1], which delivered approximately 2,600 cycles or 19% of the Group’s total in their first full year of operation as part of MDMG.

 

“Such impressive results from the six Medica and ARTMedGroup clinics that we successfully integrated into the Group in 2016 underscore the efficacy of our long-term regional development strategy. Alongside our successful acquisitions, we also moved forward with opening new high-tech clinics and departments. We launched our first clinic in Kostroma in April 2016, and significantly expanded our footprint in Russia’s largest market – Moscow and the Moscow region – with the opening of Mother and Child Khodynskoe Pole, an out-patient centre in Odintsovo, as well as an IVF department at the Mother and Child Yugo-Zapad clinic and an interventional cardiology and cardiovascular surgery department at the Lapino hospital.

 

Looking forward to 2017, we aim to maintain our current trajectory of strong results. We also plan to further develop our asset portfolio by expanding our presence in those regions and services where we see unsatisfied demand. We are confident that we can satisfy it at the highest level of quality.”

Deliveries

• In FY 2016, total deliveries increased 20% y-o-y to 6,656.
• In Q4 2016, total deliveries increased 15% y-o-y to 1,637.
• In FY 2016, there were 1,061 deliveries at Mother & Child Ufa hospital.

IVF

• In FY 2016, total IVF cycles rose 51% y-o-y to 14,004.
• In Q4 2016, total IVF cycles rose 49% y-o-y to 3,993.
• In FY 2016, LFL^[2] 10,921 IVF cycles were performed, up 18% y-o-y.

In-patient treatments

• In FY 2016, total in-patient treatments grew 11% y-o-y to 53,142, driven by:
  • 1% increase in OBGYN in-patient treatments;
  • 23% increase in paediatric in-patient treatments;
  • 17% increase in in-patient days using other medical services.
• In Q4 2016, the total number of in-patient days increased 9% y-o-y to 13,926.
• In FY 2016, LFL in-patient treatments increased 11% y-o-y to 53,095.

Out-patient treatments

• In FY 2016, the total number of out-patient treatments increased 18% y-o-y to 1,388,995, driven by:
  • 12% increase in OBGYN out-patient treatments;
  • 14% rise in paediatric out-patient visits;
  • 29% increase in other medical services.
• In Q4 2016, the total number of out-patient treatments increased 18% y-o-y to 370,884.
• In FY 2016, LFL out-patient treatments increased 11% y-o-y to 1,298,218.
  

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