SINGAPORE (July 25): Raffles Medical Group's earnings rose 4.5% to $16.7 million in the second quarter ended June 30, 2016, from $15.9 million in the previous corresponding quarter.

Revenue grew 19.8% to $119 million in 2Q from a year ago. All divisions contributed positively, with revenue from Healthcare Services and Hospital Services increasing by 42.2% and 7.9% respectively.

The strong growth in the group’s revenue was mainly due to higher patient load, an expanding Raffles Medical clinic network, higher revenue contributed by more specialist consultants as well as the newly acquired International SOS (MC Holdings) Pte Ltd and its subsidiaries (MCH).

However, the higher revenue was offset by greater staff costs, operating expenses and supplies used for the opening of the new medical centre at Raffles Holland V.

For the half-year period, earnings rose 4.1% to $31.3 million versus $30.9 million in the same period last year, while revenue rose 21.4% to $235.8 million from $194.3 million previously.

“The moderation of the economic growth in Singapore and the region may have a dampening effect on the healthcare sector,” says Raffles Medical in a Monday filing.

However, the group says it is “well positioned to grow and expand in Singapore and the region” through its branch network, MCH Clinics and the opening of Raffles Hospital Extension next year, and that it will continue to be “vigilant to respond to new opportunities that may arise in Singapore and the region”.

An interim dividend of 0.5 cent has been declared.

Raffles Medical closed 1.25% higher at $1.62 on July 22.