Thomson Medical Group EBITDA soars 41% in H1 2023

The increase was due to a sudden demand for healthcare services focusing on personal health.

Thomson Medical Group Limited (TMG) reported a 41% increase in their Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) to $55.5m for the first half of the fiscal year (1H) ending 31 December 2022. 

TMG said its revenue increased 27%, from $145.5m to $184m, whilst the revenues for their hospitals and specialist services rose 15% to $91.3m and 41% to $92.5m, respectively. These were attributed to an increased patient load, higher intensity of cases, and ongoing public-private projects in Singapore.

By geography, the group’s revenue from Singapore grew 28% to $139m due to an increased contribution from core services such as fertility and paediatric medicine, whilst the revenue from Malaysia rose 23% to $45m after the opening of Thomson Hospital Kota Damansara’s (THKD) new 300-bed wing during the third quarter (Q3) of 2022.

During the period under review, TMG’s net profit after tax rose 74% to $24.3m, but their other income decreased 53% to $2.3m as a result of discontinued property tax rebates and government grants.

TMG Executive Director and Group CEO Dr. Melvin Heng said the increase of their revenue was due to a surge of demand for healthcare services with emphasis on personal health. This was after travel and community restrictions were eased towards the end of 2022.

“Elective procedures which were deferred during the pandemic are now being performed. We expect this trend to continue into 2023,” he added.

TMG also reported a 27% increase in their manpower costs for H1 ($62.6m), whilst operating expenses rose 11% to $38.6m. These are due to the developments made for THKD’s new wing, a competitive healthcare market with higher salary expectations, increasing professional fees, and higher utility costs.

But they also indicated that as at end-December 2022, their cash and short-term deposits stand at $153.5m, providing enough funds for their future projects.

“Whilst we tackle issues of manpower scarcity and higher operating costs, our commitment to invest in digital capabilities and drive process efficiency will help us provide smooth and cost-efficient services to our patients,” Dr. Heng said.