MLP Saglik Hizmetleri (MPARK) H1 2024 earnings summary

Executive summary

• Achieved strong top and bottom line growth in Q2 and H1 2024, driven by private medical insurance, disciplined cost management, and operational efficiency.

• Opened five new hospitals in 2024, expanding bed capacity by 10%.

• Leveraged AI in hospital management for cost efficiency and revenue maximization.

• JCI-accredited hospitals reached seven after Medical Park Pendik Hospital certification.

• Net profit grew 20.4% year-over-year to TL 2,055m in H1 2024; Q2 net profit up 7.9% to TL 1,240m.

Financial highlights

• Revenue rose 26% year-over-year to TL 16,331m in H1 2024; Q2 revenue up 18.6% to TL 7,701m.

• EBITDA increased 37% year-over-year to TL 4,102m in H1 2024; Q2 EBITDA up 21.6% to TL 1,897m.

• Domestic patient revenues up 30% year-over-year in H1 2024; inpatient and outpatient revenues rose 26.6% and 34.1%, respectively.

• Gross profit margin improved to 24.9% in H1 2024 from 24.1% in H1 2023.

• Operating cash flow fell 7.2% year-over-year to TL 3,095m in H1 2024; free cash flow down 14.9% to TL 2,319m.

Outlook and guidance

• Management expects continued growth supported by private medical insurance, top-up insurance, and medical tourism.

• Ongoing focus on cost efficiency and capacity optimization through AI-driven management.

• Expansion to continue with new hospital openings, including Kosova Medical Park Hospital in Pristina by end of August.