Popularity with patients ensures growth for Asklepios Kliniken
Good half-yearly figures despite difficult environment
The number of patients rose by 18.0% year-on-year in the first half of 2012 to over 988,000; this was due in part to the consolidated figures of MediClin AG, which had an impact for the first time in the current half-yearly report. This led to an increase in revenue of 25.1% (3.7 percentage points of which were attributable to organic growth) to EUR 1,487m (first half of 2011: EUR 1,188m). Despite ongoing pressure on remuneration for hospitals due to discounts for additional services on the income side and the noticeable effects of the current collective bargaining, the operating result (EBITDAR) rose by 46.3% to EUR 155.5m, meaning that the margin increased by 1.5 percentage points to 10.4%.
EBIT improved by EUR +14.7m to EUR 80.1m, corresponding to a margin of 5.4% (first half of 2011: 5.5%). This reflects the relatively high level of amortisation, depreciation and impairment in the same period of the previous year due to increased write-downs on completed buildings and the company acquisitions in the previous year. The consolidated net income of EUR 55.6m for the first half of the year was around 26.9% higher than the adjusted result for the same period of the previous year; the resulting return on sales was 3.7%.
Dr Ulrich Wandschneider, CEO of the Group: “The financial pressure placed on the hospital and rehabilitation sector has increased further, as we predicted towards the end of last year. This trend is set to continue in the second half of the year.” Stephan Leonhard, Deputy Chairman of the Group management and CFO, adds: “On the expenses side, we have already felt the effects of the recently concluded collective wage agreements in our hospitals. We are facing a significant additional burden in the second half of the year. At the same time, we are experiencing an ongoing price decline on the income side.”
Net cash flow rose by +31.8% to EUR 95.7m compared with the first half of the previous year, not least due to the increase in the operating result in the corresponding period of the previous year.
Accounting and financing structures remain sound
The equity ratio as at the reporting date was 30.6%; including subordinated capital, it was 36.8%. Cash and cash equivalents and undrawn lines of credit of more than EUR 365m also provide the Group with sufficient financial reserves for growth and capital expenditure.
Net debt amounted to EUR 664.8m at the end of the first half of 2012, of which EUR 162.0m was subordinated capital. Excluding subordinated capital, the debt ratio is therefore 2.0 times EBITDA (as of 31 December 2011: 1.5 times). The increase in the debt ratio is attributable to the financing of acquisitions. Asklepios continues to enjoy extremely sound financing structures.
Asklepios reports share in the voting rights of Rhön-Klinikum AG
Asklepios Kliniken informed the Federal Financial Supervisory Authority and Rhön-Klinikum AG on 27 June of this year that Dr. große Broermann and Asklepios Kliniken had exceeded the thresholds of 3% and 5% of the voting rights in Rhön-Klinikum AG. At that date, their share in the voting rights amounted to 5.01%. As a family company, Asklepios is geared towards the long term. In taking this step with regard to Rhön-Klinikum AG, it hopes to keep all options open in terms of structure.
Outlook
Despite the above developments, Asklepios has maintained its outlook for the rest of 2012 and expects to see a further increase in the operating result compared with the previous year on the back of satisfactory organic growth, among other factors. With regard to fiscal 2013, Asklepios finds itself facing new challenges in closing the ever-widening gap between income and costs despite the welcome developments in terms of income (introduction of the orientation value). In order to help close this gap, it will step up internal efforts to leverage cost and efficiency potential.
About Asklepios
The healthcare group Asklepios Kliniken GmbH is one of Germany’s leading private operators of hospitals and healthcare facilities. The clinic group pursues a responsible and sustainable growth strategy that is geared towards high quality and innovation. On this basis, Asklepios has achieved dynamic growth since it was founded over 25 years ago. The Group currently has 140 healthcare facilities nationwide and employs more than 44,000 staff. Over 1.7 million patients were treated at facilities run by the Asklepios Group in 2011.