SINGAPORE (Feb 27): IHH Healthcare has announced that its 4Q18 earnings increased by more than five times to RM509.4 million ($168.8 million), compared to RM101.3 million in 4Q17 on stronger operational performance and forex gains from Acibadem’s non-Lira loans.

However, earnings for FY18 dropped 35% to RM627.7 million from RM970.0 million in FY17 on absence of one-off gain on disposal of Apollo Hospital stake, while revenue for the full-year ended Dec 2018 increased by 3% y-o-y to RM11.5 billion.

Revenue for the quarter saw a 10% increase to RM3.17 billion from RM2.89 billion in the previous year, due mainly to the sustained organic growth from existing operations and the continuous ramp up of Gleneagles Hong Kong Hospital and Acibadem Altunizade Hospital, both of which opened in March 2017.

The group’s acquisition of Amanjaya in Oct 2018 and Fortis in Nov 2018 also contributed to the revenue increase.

Other operating income doubled to RM172.3 million from RM84.6 million last year.

During the quarter, the group recorded a profit of RM339.0 million from its finance costs, compared to a loss of RM292.0 million a year ago, due mainly to exchange gains on net borrowings

Share of profits of associates also saw a significant increase to RM10.4 million from RM0.56 million in the previous year.

The group has recommended a first and final single tier dividend of 3 sen per share.

On the outlook, the group says that it will increasingly leverage on technology to increase productivity and service offerings. It will also focus on ramping up its existing operations and integrating Fortis in the near to medium term.

Mohammed Azlan Hashim, chairman of IHH, says, “The Board and Management look forward to 2019 as the group continues to lay firm foundations to deliver opportunities for growth and create sustainable long-term value for shareholders, with a well-balanced portfolio of operations.”

Shares in IHH closed at $1.85 in Singapore on Wednesday.