MD Medical Group announces operating results for Q3 2023
Key financial highlights for Q3 2023:
- Total revenue increased by 5.4% year-on-year (y-o-y) to RUB 6,793 million.
- Like-for-like (LFL) revenue grew by 4.7% y-o-y.
- Revenue of the Group’s regional hospitals increased by 14.6% y-o-y to RUB 1,902 million thanks to the strong performance across all key service segments in the hospitals of Tyumen, Novosibirsk, Samara, and St Petersburg.
- Revenue from regional out-patient clinics rose by 21.9% y-o-y to RUB 931 million mainly thanks to the increase in the number of IVF cycles and the average ticket for IVF.
- Revenue of the Group’s hospitals in Moscow decreased by 4.1% y-o-y to RUB 3,237 million mainly due to a decline in the number of COVID-19 cases in Q3 2023 compared to the same period last year.
- Revenue from out-patient clinics in Moscow and the Moscow Region rose by 11.4% y-o-y to RUB 715 million thanks to the increase in the number of IVF cycles and the number of out-patient treatments
- Total out-patient treatments increased by 9.3% y-o-y to 528,739, with the average ticket up 5.3% to RUB 5.6 thousand in Moscow and up 5.0% y-o-y to RUB 2.2 thousand in other regions.
- Total in-patient treatments decreased by 11.5% y-o-y to 34,576, with the average ticket down 13.8% to RUB 81.9 thousand in Moscow and up 27.9% y-o-y to RUB 41.1 thousand in other regions.
- Total IVF cycles increased by 13.2% y-o-y to 4,769, with the average ticket up 1.3% to RUB 283.7 thousand in Moscow and up 13.2% y-o-y to RUB 273.4 thousand in other regions.
- Total deliveries increased by 16.5% y-o-y to 2,810, with the average ticket up 2.3% y-o-y to RUB 485.6 thousand in Moscow and up 9.7% y-o-y to RUB 202.5 thousand in other regions.
- Total revenue increased by 5.6% y-o-y to RUB 19,646 million.
- Revenue of the Group’s regional hospitals grew by 14.6% y-o-y to RUB 5,440 million.
- Revenue from regional out-patient clinics rose by 22.3% y-o-y to RUB 2,684 million.
- Revenue of the Group’s hospitals in Moscow declined by 3.1% y-o-y to RUB 9,427 million.
- Revenue from out-patient clinics in Moscow and the Moscow Region rose by 7.9% y-o-y to RUB 2,075 million
- Total out-patient treatments increased by 8.7% y-o-y to 1,520,626.
- Total in-patient treatments decreased by 5.0% y-o-y to 105,151.
- Total IVF cycles increased by 13.5% y-o-y to 14,118.
- Total deliveries went up by 12.1% y-o-y to 7,312.
- Completing the change of the GDR programme depositary. RCS Issuer Services S.A.R.L. was appointed as the Company’s new depositary bank effective from 8 August 2023.
- Redomiciliation to SAR. On 31 August 2023, the Group's Extraordinary General Meeting of shareholders resolved to redomicile the Company to the Special Administrative Region of Oktyabrsky Island, Kaliningrad Region, Russian Federation (“SAR”).
- Acquisition of four clinics in the Khanty-Mansi Autonomous Area–Yugra. Following the acquisition, the Group will take a leading position in private healthcare in Yugra and create an outpatient base for referring patients to the Group's hospital in Tyumen for high-tech services. The total cost of the deal was RUB 349 million paid from the Group's own funds.
- Changing the listing status on the Moscow Exchange. The Company has initiated the procedure to change the listing status on the Moscow Exchange to the primary one by registering the prospectus of existing GDRs with the Bank of Russia. The respective documents have been submitted to the regulator for review with its approval expected within the prescribed legal timeframe.
Mark Kurtser, CEO at MDMG, said:
“In Q3 2023, MD Medical Group continued to demonstrate strong growth in operational and financial performance, maintaining its position as a leader in the private healthcare sector.
Our core segments – deliveries and IVFs – have significantly improved their results, with combined revenue up 21% in Q3 despite the overall downward trend in Russia’s birth rate. This impressive performance further solidifies our undisputed leadership in these segments fuelled by the unwavering trust patients place in our brand, the expertise of our team, and the service quality and comfort we provide.
We have also posted solid operating results in traumatology, cardiology, dentistry, neurology and plastic surgery thanks to our strongly diversified range of healthcare services and their superior quality.
Following our growth strategy in Moscow and other regions with a strong economic potential, we finalised the acquisition of four clinics in the Khanty-Mansi Autonomous Area–Yugra this September and are set to inaugurate a recently acquired hospital in Michurinsky Avenue and a clinic in ZILART residential complex in Moscow before the end of this year.
Thanks to our sound financial status with a net cash balance of RUB 6.7 billion, we are well-positioned to continue our organic and non-organic growth and resume dividend payouts once the redomiciliation process is complete.”
Notes:
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 53 state-of-the-art healthcare facilities, including 10 multidisciplinary hospitals and 43 out-patient clinics in 27 regions of the Russian Federation. In 2022, MD Medical Group's revenue amounted to RUB 25.2 bln while EBITDA amounted to RUB 7.9 bln. The Company's GDRs are traded on Moscow Exchange (MOEX: MDMG).