MD Medical's revenue goes up by 22% in Q3 2024
Key financial highlights for 9M 2024:
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Total revenue increased by 22.3% y-o-y to RUB 24,033 million
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Like-for-like (LFL) revenue grew by 18.9% y-o-y
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Revenue of the Group’s hospitals in Moscow rose by 26.0% y-o-y to RUB 11,880 million on the back of robust revenue performance in the segments of in-patient care, deliveries, and out-patient treatments
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Revenue of the Group’s regional hospitals grew by 18.4% y-o-y to RUB 6,440 million, driven by strong results in in-patient and out-patient treatments
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Revenue from out-patient clinics in Moscow and the Moscow Region rose by 9.9% y-o-y to RUB 2,280 million thanks to stronger out-patient revenue
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Revenue from out-patient clinics in other regions rose by 26.4% y-o-y to RUB 3,393 million due to growing revenue from out-patient treatments and IVF services
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As at 30 September 2024, the Group's net cash position stood at RUB 3,578 million
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Total Capex for 9M 2024 was RUB 1,595 million
Key operational highlights for 9M 2024:
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Total out-patient treatments increased by 17.9% y-o-y to 1,793,559
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Total in-patient treatments increased by 4.8% y-o-y to 110,212
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Total deliveries increased by 13.8% y-o-y to 8,318
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Total IVF punctures went up by 3.5% y-o-y to 14,617
Key financial highlights for Q3 2024:
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Total revenue increased by 21.8% y-o-y to RUB 8,273 million
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Like-for-like (LFL) revenue grew by 17.7% y-o-y
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Revenue of the Group’s hospitals in Moscow rose by 25.2% y-o-y to RUB 4,053 million on the back of robust revenue performance in the segments of in-patient care, out-patient treatments, and deliveries
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Revenue of the Group’s regional hospitals grew by 18.4% y-o-y to RUB 2,252 million, driven by strong results in out-patient and in-patient treatments
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Revenue from out-patient clinics in Moscow and the Moscow Region rose by 11.6% y-o-y to RUB 798 million thanks to stronger out-patient revenue
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Revenue from out-patient clinics in other regions rose by 24.4% y-o-y to RUB 1,158 million due to growing revenue from out-patient treatments and IVF services
Key operational highlights for Q3 2024:
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Total out-patient treatments increased by 15.4% y-o-y to 610,340, with the average ticket up 11.5% to RUB 6.2 thousand in Moscow and up 12.5% y-o-y to RUB 2.5 thousand in other regions
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Total in-patient treatments went up by 0.3% y-o-y to 34,694, with the average ticket up 44.3% to RUB 118.2 thousand in Moscow and up 5.3% y-o-y to RUB 43.4 thousand in other regions
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Total deliveries increased by 3.8% y-o-y to 2,916, with the average ticket up 19.9% y-o-y to RUB 582.2 thousand in Moscow and up 16.5% y-o-y to RUB 235.8 thousand in other regions
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Total IVF punctures increased by 3.0% y-o-y to 4,913, with the average ticket up 12.1% to RUB 318.1 thousand in Moscow and up 8.3% y-o-y to RUB 296.1 thousand in other regions
Key events during Q3 2024 and after the reporting period:
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New clinic in Chelyabinsk launch – expansion to new region. On 24 October 2024 the Group opened Mother & Child Chelyabinsk clinic. Spanning 420 sq m and centrally located, the facility will offer a wide range of specialised services for women in obstetrics, gynaecology, oncology, breast health, and reproductive medicine. The new clinic is designed to accommodate 18,000 visits and 800 IVF cycles per year. The cllinic has received a total investment of RUB 105 million for its opening and outfitting.
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New medical centre in the Moscow City launch. On 9 October 2024 the Group opened the new multidisciplinary centre Lapino City, spanning 1,460 sq m, which offers a comprehensive array of out-patient medical services for adults, focusing on the diagnosis, treatment, and prevention of various diseases. These are available at two key facilities: the Diagnostic and Treatment Centre, which includes radiology and endoscopy departments, and the Women’s Health Centre – both offering day hospital care. Patients can consult with doctors from over 25 different specialities on a daily basis. The new medical centre is designed to accommodate 100,000 visits and 1,500 IVF cycles per year. Lapino City has received a total investment of RUB 372 million for its opening and outfitting.
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New clinic in the Solntsevo district of Moscow launch. On 1 October 2024 the Group opened the Mother & Child Solntsevo clinic with a total area of 175 sq m which offers a wide range of specialized services for women. The capacity of the clinic allows for 24,000 outpatient visits per year. Total investments in the project came in at RUB 33 million.
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H1 2024 Dividends announcement. At the meeting held on 28 August 2024, the Company’s Board of Directors decided in addition to the interim dividends already paid for 3M 2024 to distribute dividends for 6M 2024 in the amount of RUB 1.7 billion, or RUB 22 per ordinary share, representing a cumulative payout of 61% of the Group's IFRS consolidated net profit for 6M 2024. Dividend payments are scheduled to be made before mid-September
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3M 2024 record-breaking dividends payment. In July 2024, dividends were paid based on the results of 3M 2024 on ordinary shares of MD Medical Group IPJSC in the amount of
c. RUB 10.6 billion, or RUB 141 per ordinary share, including the use of retained earnings from previous years -
New clinic in Lipetsk launch. On 28 August 2024 the Group opened its clinic in Lipetsk. The new 450 sq m clinic has a capacity sufficient to perform 800 IVF cycles, including those covered by mandatory health insurance, and to accommodate 18,000 outpatient visits annually. Total investments in the project came in at RUB 103 million.
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New medical center in Anapa launch. In August 2024 MD Medical opened its new two-storey family-oriented medical centre MD Group Anapa which spans 2,754 sq m on the premises of the Volleygrad sports and recreation family resort. The state-of-the-art healthcare facility boasts advanced medical equipment for clinical, diagnostic, and rehabilitation services, and was built in 2024 with no investment made by the Company in its development. The Company will operate the centre based on the lease agreement for the premises and equipment. The medical centre has a total capacity of up to 96,000 appointments per year.
MD Medical CEO Mark Kurtser said:
Revenue growth in Q3 reached an impressive 22%. I am particularly pleased to highlight the solid performance of the Group's hospitals, which have significantly contributed to our upward revenue trends. This is largely driven by in-patient services for common diseases in oncology, gynaecology, cardiology, traumatology, and respiratory medicine, alongside a wide range of surgical interventions.
Additionally, we have seen strong demand for out-patient care across all our medical facilities. The Company's total revenue, mainly from diagnostics, obstetrics and gynaecology, pediatrics, and other areas of out-patient services and telemedicine, increased by 26%. Patient visits have been the second largest driver of revenue, reflecting the extensive network of clinics within our Group.
Revenue growth from deliveries, our traditional line of business, was 22% in Q3. This year, we have observed a consistent trend of patients opting for premium formats in prenatal care and delivery services, including in home obstetrics centres. This shift comes from patients rethinking the importance of an environment for such a significant life event and the high quality of medical care provided by MD Medical Group.
In summary, as a growth company, we are committed to continuous development. Our strong expansion of out-patient services this year will enhance the volume of medical care provided through our new clinics and generate additional patient flow, thereby boosting the operating rate of our hospitals. As an attractive investment opportunity, we are dedicated to sharing our success with shareholders. We have already paid dividends twice this year and are considering another payment before year-end."
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 61 state-of-the-art healthcare facilities, including 11 multidisciplinary hospitals and 50 out-patient clinics in 30 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 ordinary shares are traded on Moscow Exchange (MOEX: MDMG).