Asklepios: Revenue growth in first half of 2018

Asklepios increased its revenue year on year in the first half of 2018. The number of patients treated at its healthcare facilities also rose and now totals 1.18 million. Due to higher expenses, particularly in the area of staff costs, the operating result (EBITDA) recorded a decline. Based on the half-year figures, the Group management is confirming its forecast for 2018 as a whole and anticipates slightly higher revenue growth than previously expected.
Revenue increased by 5.0% to EUR 1,700.8 million in the first half of 2018 (6M 2017: EUR 1,619.9 million). In particular, developments in the areas of somatics, psychiatry and rehabilitation had a positive impact here. EBITDA was negatively impacted by higher staff costs and decreased by 5.6% to EUR 159.0 million (6M 2017: EUR 168.4 million). The EBITDA margin was 9.4% (6M 2017: 10.4%).
The staff costs ratio increased to 65.4% (6M 2017: 65.0%). This was partly due to an increase in the number of full-time equivalents employed at Asklepios to 35,174 (6M 2017: 34,894). New staff were hired primarily in the areas of nursing care and medical service. There was also a rise in average staff costs due to pay-rate increases. In view of the continuing shortage of specialist staff and the regulatory changes on the healthcare market, investments in employees and an increase in the workforce are strategically important for Asklepios.
At 21.4%, the cost of materials ratio was down slightly year on year (6M 2017: 21.6%). The other expenses ratio of 8.3% was higher than the comparative figure (6M 2017: 7.9%). Strategic investments along the value chain had the effect of reducing consolidated interim income in the amount of EUR 60.7 million (6M 2017: EUR 73.3 million).
“We are proud that once again more patients than in the previous year chose to place their trust in us and receive treatment at Asklepios’s healthcare facilities,” comments CEO Kai Hankeln. “We are deliberately accepting a temporary decrease in earnings in order to make forward-looking investments in our employees and healthcare facilities in the interests of our patients.”
Over the past six months, Asklepios made gross investments of EUR 114.7 million (6M 2017: EUR 100.3 million). Net capital expenditure amounted to EUR 76.3 million (6M 2017: EUR 71.4 million) and was fully financed by cash flow from operating activities.
“I am pleased that we are continuously increasing our headcount, with the number of employees rising to more than 35,000 full-time equivalents in the past half-year period,” says Dr Thomas Wolfram, CEO. “We are building on this positive development. We are continuing to hire new staff and are making additional investments in training for our employees.”
Total assets decreased slightly by 0.8% to EUR 4,078.4 million (31 December 2017: EUR 4,113.0 million). The Group has equity of EUR 1,476.6 million (31 December 2017: EUR 1,416.6 million), corresponding to an equity ratio of 36.2% (31 December 2017: 34.4%). As at the end of the reporting period, the slight decrease in net debt to EUR 845.4 million (31 December 2017: EUR 874.6 million) resulted in a debt ratio of 2.2 times EBITDA (31 December 2017: 2.2x).
“We have sufficient scope to make further strategic investments along our value chain in the second half of the year, too. From the perspective of a future-oriented healthcare group, this is the right way to support sustainable growth,” explains CFO Hafid Rifi.