Mediclinic International PLC (Mediclinic)

Mediclinic has a March year-end and therefore the results for the 12 months to 31 March 2019 have been equity accounted in Remgro’s results for the year under review. Mediclinic’s contribution to Remgro’s headline earnings for the year under review amounted to R1 693 million (2018: R1 556 million).

Mediclinic’s turnover for the financial year ended 31 March 2019 increased by 2% to £2 932 million (2018: £2 876 million). Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) decreased by 4% from £515 million to £493 million, while underlying margins declined from 17.9% to 16.8%.

Mediclinic has an interest of 100% in Hirslanden, the holding company of the largest private hospital group in Switzerland. Hirslanden’s revenue for the year under review increased by 2% to CHF1 778 million (2018: CHF1 735 million) and adjusted EBITDA was 10% lower at CHF285 million (2018: CHF318 million). The adjusted EBITDA margin decreased from 18.3% to 16.0% due to tariff reductions and less favourable insurance mix. Cost savings and efficiency savings partly offset this.

Mediclinic Southern Africa’s revenue increased by 5% to R15 960 million (2018: R15 204 million) for the year under review, mainly due to a 4.3% increase in the average income per bed-day. Adjusted EBITDA increased by 4% to R3 385 million (2018: R3 245 million), resulting in the underlying EBITDA margin decreasing from 21.3% to 21.2% due to lower patient volumes, partly offset by cost management and efficiency initiatives.

At 31 March 2019, Mediclinic Middle East owned and operated seven hospitals and 20 clinics with a total of 926 beds in Dubai and Abu Dhabi. Revenue increased by 7% to AED3 262 million (2018: AED3 050 million) for the year under review. Adjusted EBITDA increased by 7% to AED425 million (2018: AED397 million), while the adjusted EBITDA margin remained flat at 13.0%. These increases were mainly due to increased patient volumes.