Thanks to hard currency denominated debt, Turkish private healthcare provider MLP Saglik Hizmetleri, better known as MLP Care, has reported a loss for the year.
It showed an improved loss of L104 million (US$19 million) for 2018 on revenues that rose 21.6% to L3.13 billion. The net profit figures adjusted for currency losses against US dollar and Euro showed that profits quadrupled to L142 million.
All of the FX-denominated hospital building lease agreements have now been converted to Turkish lira as of October last year. The currency has lost 3.6% against the US dollar over the past year and almost 1% against the Euro.
Revenues generated from domestic patients increased by 14.6% in Q4 and 14% for the year, driven by inpatient and outpatient revenue growth. The two new hospitals have also started to contribute to the top-line.
“We have focused on the successful ramp up of the two new hospitals opened in 2018 as well as operational improvements to increase patient satisfaction and effective cost management across all our hospitals,” said chairman and CEO Muharrem Usta. “Our foreign medical tourism revenues maintained its high growth momentum in 2018. In the last quarter of 2018, we posted net profit thanks to continued growth in EBITDA and appreciation of TL.”
Strong growth in medical tourism continued in the fourth quarter, bringing over 75.9% growth in 2018. Over a third of the revenue growth was driven by price and FX impact. “We continue to seek to increase our exposure to hard currency revenues by expanding our strong marketing efforts,” the group said in a statement.
Revenues from other ancillary business accelerated last year on the back of increased contribution of management fees from university hospitals. MLP currently has five university hospitals, of which three have management service contracts.
MLP Care has 31 hospitals in 17 cities across the country.