Expansion drives revenue growth at MDMG

Russian healthcare provider MD Medical Group (MDMG) has posted an 8% increase in revenue as it ramped up operations at its existing sites and opened a new facility in Samsara.

Year-on-year revenue climbed to RUB 7.1bn (approximately £77.7m) in the first half of 2018 against RUB 6.6bn (approximately £72.2m) in the same period last year. The London-listed company, which operates the Mother & Child network of maternity and IVF facilities, said like-for-like revenue was up 4% while EBITDA edged up 2% to RUB 1.9bn (approximately £20.8m). However, EBITDA margin was down 1.5 basis points to 27%.

The company focuses on obstetrics, gyneacology, IVF and paediatrics, which combined represent roughly 70% of revenue. The remaining 30% is derived from other medical services including urology and surgery, but the company’s largest earnings generator is IVF – representing around 23% of total revenue.

CEO Mark Kurtser said: ‘In the first half of 2018, we took a number of important steps towards implementing our investment programme to support the future growth of the company.

‘We opened our first hospital in Samara – the largest facility of its kind in the Volga region. We also continued work on construction of the hospital in Tyumen, launched construction of the second building at Lapino, and started expanding PMC. We also significantly expanded three existing clinics and opened new ones in Nizhny Novgorod and Moscow, and just recently in Volgograd. After the end of the reporting period, we also started construction of our first hospital in St Petersburg. This active yet deliberate expansion is an investment into the future of the company and its shareholders.’