Bumrungrad Hospital (BH) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue declined 4.9% year-over-year, mainly due to lower revenue from the Middle East, UAE, and Cambodia, while China, USA, and Qatar showed strong growth.

• EBITDA margin remained robust at 40.2% in Q3 2024, with net profit margin at 30.3%, supported by effective cost management and operational efficiency.

• Year-to-date, EPS increased by 11.1%, and EBITDA margin held above 40%, reflecting robust performance despite external challenges.

• The company received awards for healthcare and ESG excellence, and achieved certification as a Genomic Medicine Provider.

• Myanmar's performance improved 10% sequentially from Q2 2024, and the company continued to focus on operational efficiencies.

Financial highlights

• Q3 2024 total revenue was THB 6,447 million, down 4.9% year-over-year; EBITDA was THB 2,589 million, down 1.8%; net profit was THB 1,955 million, flat year-over-year.

• For the nine months, total revenue increased by 1.8% to THB 19,343 million, EBITDA by 8.5% to THB 7,843 million, and net profit by 11.1% to THB 5,872 million.

• EBITDA margin improved to 40.2% in Q3 2024 from 38.9% in Q3 2023; net profit margin increased to 30.3% in Q3 2024 from 28.8% in Q3 2023.

• Revenue decline in Q3 was driven by a 6.8% drop in non-Thai patient revenue and a 1.4% drop in Thai patient revenue.

• Outpatient revenue contribution increased to 50% in Q3, with insurance payer revenue rising 6.5% year-over-year.

Outlook and guidance

• Q4 2024 revenue is expected to be flat to -3% year-over-year, an improvement over Q3's 5% decline.

• Continued focus on margin management and operational efficiency, with stable revenue mix and non-Thai patients contributing about two-thirds of hospital revenues.

• Subtle improvements are seen in the Kuwait business, with hopes for further recovery.