SINGAPORE (Apr 24): TalkMed Group, which provides private healthcare services in the fields of medical oncology through Parkway Cancer Centre in Singapore, reported a 37.2% fall in first quarter earnings to $5.06 million in 1Q18 from $8.39 million in 1Q17.
This was mainly due to a decrease in revenue and an increase in operating expenses which was partially offset by a decrease in the share of loss of associate.
Revenue fell 25.7% to $12.07 million from a year ago mainly due to a decrease in the number of patient visits compared to the same corresponding period last year.
However, with Dr Ang Peng Tiam resuming his medical duties on March 25, TalkMed says it looks forward to an improvement in the group’s revenue and earnings in the coming months.
See: TalkMed CEO Ang Peng Tiam resumes medical duties
Employee benefits expense comprising remuneration paid to doctors, nurses as well as other support staff narrowed to $3.9 million from $4.4 million a year ago mainly due to a decrease in salaries incurred.
Other operating expenses comprising advertising and marketing expenses, depreciation, directors’ fees, donation made and laboratory consumables and services, increased by 47.8% to $1.09 million in 1Q18.
The group’s share of loss after tax of its associate, Hong Kong Integrated Oncology Centre Holdings, was $0.22 million in 1Q18 compared to $0.55 million in 1Q17, representing an improvement of $0.33 million.
Profit before tax fell 38.3% to $6.35 million from $10.3 million.
In its outlook, TalkMed says its business is dependent to a large extent on the economic performance of Singapore and countries in South East Asia.
As it is, the group is facing margins pressure from competitors in low-cost neighbouring countries which offer cheaper medical services.
Shares in TalkMed closed 0.5 cent higher at 70 cents on Tuesday.
