Health Management International’s profit crashes 38% to $1.6m

Deferred tax assets pulled earnings down.

Private healthcare provider Health Management International (HMI) declared a net profit attributable to equity holders $1.6 million (RM4.9 million) in 4QFY16 ended, 38% lower than the $2.6 million (RM7.8 million) a year ago. Full year PATMI also dropped 28% to $6.7 million (RM19.9 million) in FY16 compared to $9.3 million (RM27.6 million) in the previous year.

HMI said that the declines was largely due to impact of deferred tax assets as well as higher general operating costs.

“Excluding the impact from deferred taxes, FY2016 adjusted PATMI would have been $7.8 million (RM 23.3 million), a 5% increase from FY2015 adjusted PATMI of $7.4 million (RM22.1 million),” HMI explained.

Group revenue, meanwhile, improved 11% to $35.7 million (RM106.2 million) in 4QFY16, and 15% to $133.8 million (RM397.8 million) for the whole FY16, thanks to higher patient load and average bill sizes in its Malaysian hospitals.