MD Medical Group reports 23% increase in revenue for Q1 2024
MD Medical Group Investments Plc (“MD Medical Group”, “MDMG”, “Group” or the “Company”; MOEX: MDMG), a leading Russian private healthcare provider, today announces its operating and unaudited financial results for the first quarter of 2024.
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Total revenue increased by 23.2% to RUB 7,663 million
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Revenue of the Group’s hospitals in Moscow rose by 25.0% year-on-year (y-o-y) to RUB 3,855 million due to an increase in the volume of in-patient services in oncology, neurology, pediatrics, therapy, and gynaecology, as well as growth of out-patient treatments
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Revenue of the Group’s regional hospitals grew by 21.3% y-o-y to RUB 2,025 million driven primarily by revenue from in-patient treatments in Samara, Tyumen and Novosibirsk in the gynaecology, pediatrics, and oncology segments
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Revenue from out-patient clinics in Moscow and the Moscow Region rose by 10.0% y-o-y to RUB 705 million on the back of growing demand for the services provided by different categories of healthcare professionals, including as a result of higher utilisation rates at new clinics opened in 2023–2024
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Revenue from out-patient clinics in other regions rose by 29.2% y-o-y to RUB 1,063 million driven by growing demand for out-patient treatments and IVF services
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As at 31 March 2024, the Company’s net cash position amounted to RUB 10,940 million
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Capex in Q1 2024 amounted to RUB 512 million.
- Total deliveries increased by 18.1% y-o-y to 2,606, with the average ticket up 20.6% y-o-y to RUB 550.3 thousand in Moscow and up 14.3% y-o-y to RUB 219.9 thousand in other regions
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Total IVF punctures went up by 7.1% y-o-y to 4,432, with the average ticket up 5.8% to RUB 303.6 thousand in Moscow and up 7.3% y-o-y to RUB 285.4 thousand in other regions
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Total in-patient treatments increased by 9.2% y-o-y to 38,657, with the average ticket up 13.0% to RUB 102.1 thousand in Moscow and up 10.3% y-o-y to RUB 40.2 thousand in other regions
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Total out-patient treatments went up by 16.7% y-o-y to 567,317, with the average ticket up 10.1% to RUB 6.0 thousand in Moscow and up 13.7% y-o-y to RUB 2.4 thousand in other regions.
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MD Group Zilart multifunctional family clinic launched. In January 2024, the Group opened a new 452 sq m multifunctional medical centre with an annual capacity of over 50,000 out-patient treatments. Total investments in the project exceeded RUB 81 million.
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Final stage of the Company’s redomiciliation. In the middle of April the Company has received the official consent of the Cyprus Registrar to continue MD Medical's operations outside the Republic of Cyprus and submitted a set of documents for the Company’s state registration in the Special Administrative Region (“SAR”) on Oktyabrsky Island in Russia's Kaliningrad Region as an International Public Joint-Stock Company MD Medical Group Investments. The Company’s registration in Russia will enable to resume dividend payments.
MDMG CEO Mark Kurtser said:
“We made a perfect start into 2024, delivering double-digit revenue growth and strong operational performance in the reporting quarter.
Today we are witnessing strong revenue performance of our in-patient facilities. More than 20% in-patient growth resulted from improved capacity utilisation at Moscow’s hospitals in the segments of oncology, neurology, pediatrics, and gynaecology, as well as strong demand for the new neurosurgery services offered at the Lapino hospital. Gynaecology, pediatrics and oncology also ensure high bed occupancy in regional hospitals.
30% revenue growth from out-patient treatments proves sustainable increase in the number of patients for whom regular health monitoring are an absolute priority. In addition to strong performance of out-patient care services in gynaecology and pediatrics, there was also a significant increase in demand for diagnostics, laboratory testing, and rehabilitation services in Q1 2024.
Against the backdrop of strong growth in multidisciplinary areas, we remain the leader in women's and children's health care. Thus in the reporting period, the revenue growth was 40% in deliveries and 31% in pediatrics.
Success of our strategy for regional expansion is confirmed by the outstanding results of our hospitals and clinics in the regions. We do keep developing our business and solidifying our positions in the existing markets. Our plans include opening several out-patient facilities in Moscow and other regions as early as this year, and kick-starting projects to build two hospitals at the Lapino medical cluster and in Domodedovo.
We are honouring our commitment to complete redomiciliation to Russia in Q2 2024. The Company obtained a redomiciliation approval from the Cyprus Registrar and is currently finalising registration of IPJSC MD Medical Group in Russia. Once the registration is completed, we intend to resume dividend payments.”
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
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About MD Medical Group
MD Medical Group is a leading provider in the highly attractive Russian private healthcare service market. Today, the Company manages 55 state-of-the-art healthcare facilities, including 11 multidisciplinary hospitals and 44 out-patient clinics in 27 regions of the Russian Federation. In 2023, MD Medical Group's revenue amounted to RUB 27.6 bln while EBITDA was RUB 9.2 bln. The Company's GDRs are traded on Moscow Exchange (MOEX: MDMG).