SINGAPORE (July 29): Raffles Medical Group saw its earnings fall 15.6% to $14.2 million for the 2Q19 ended June 30, from $16.9 million a year ago, mainly due to gestation losses for Raffles Hospital Chongqing (RHCQ).

Earnings per share slipped to 0.79 cents in 2Q19, from 0.95 cents for 2Q18.

The Chongqing outpost generated a $2.3 million loss at the earnings before interest, taxes, depreciation and amortisation (EBITDA) level.

Excluding the losses from RHCQ, earnings would have edged up by 0.4% during the quarter.

See: Raffles Medical announces opening of Chongqing hospital

Raffles Medical’s 2Q revenue grew 5.6% to $127.0 million, from $120.2 million a year ago, driven by the healthcare services division and the hospital services division.

Revenue from the healthcare services division grew 7.4% on the back of winning more insurance contracts and corporate clients, while the hospital services division’s 3.4% growth was contributed by patient growth.

As at end June, cash and cash equivalents stood at $100.8 million.

“RHCQ was developed well within the budgeted costs. Operating costs for the first six months were significantly lower than anticipated,” Raffles Medical says in its results announcement.

“The management of RHCQ is making great efforts to reach out to the corporate and private patients of Chongqing,” it adds.

The hospital in Chongqing, which opened on Jan 2, is now operating 24/7 with a staff of multi-disciplinary international and local doctors.

The other project in China, Raffles Hospital Shanghai project, is progressing as planned, with a topping up ceremony held on May 24 to mark the completion of the building structure.

Raffles Medical says it expects to remain profitable in 2019 despite gestation losses for its Chongqing hospital.

The directors have declared an interim dividend of 0.5 cents per share – same as a year ago – to be paid on Aug 30.

As at 11.53am, shares in Raffles Medical are trading flat at $1.03.