11 September 2012. Moscow, Russia.The Medsi Group of Companies and its subsidiaries ("Medsi" or "the Group"), a leading national provider of medical and healthcare services in Moscow and other regions of Russia, has today published its unaudited consolidated US GAAP financial results for the six months to 30 June 2012.
MAIN FINANCIAL RESULTS
- Revenues totaled US$95.7 million, down 4.7% year-on-year, while in ruble terms they were RUB2,932.8 million, up 2.0% year-on-year
- OIBDA equaled US$10.9 million, down 17.9% year-on-year, while in ruble terms it stood at RUB333.3 million, down 12.3% year-on-year
- The OIBDA margin was 11.4%, down 1.8 percentage points year-on-year
- The Company reported a net loss of US$3.4 million, compared with a net profit of US$4.5 million in 1H11
- Net debt stood at US$55.5 million at the period-end, down 22.8% from the end of 1H11
- SG&A came to US$14.4 million, down 1.8% year-on-year
- Cost of sales equaled US$64.6 million, down 7.1% year-on-year
MAIN OPERATING RESULTS
- The number of visits totaled 2,206 million, up 6.3% year-on-year
- The number of services provided came to 3,895 million, up 1.9% year-on-year
- The average ticket was US$43.4, down 10.4% year-on-year, while in ruble terms it was RUB1,329.3, down 4.0%
- The overall clinic area equaled 50,210 square meters, unchanged from 1H11
Commenting on the results, Medsi President Tatyana Sergeyeva said:
A key task in the first six months of 2012 was beginning the process to integrate Medsi and the Medical Center for the Mayor and Government of Moscow (MCMGM), a state unitary enterprise. We devised an effective asset integration model that will ensure the facilities operate smoothly and help to retain existing clients and attract new ones. All of the measures to merge the assets are now under way. We expect to have integrated all of MCMGM's operations into Medsi by the end of 2012.
As planned, the Group's 1H12 financial results were affected by the additional expenses relating to the integration. However, we continue to control spending: the cost of sales and SG&A fell in 1H12. We are confident that once the integration is complete in early 2013, the financial indicators will return to their previous trend of growth. Then, however, we will be a newly merged company and the leader on the market for comprehensive medical services.