Thomson Medical Group posts $16.9m profit in H1 2021
This is following a net loss of $98m in the same period last year.
Thomson Medical Group Limited (TMG) posted a net profit of $16.9m in the first half of 2021 as it recorded higher revenue on the back of higher patient load with the gradual easing of mobility restrictions in Singapore.
This is coming from a net loss of $98m in the same period last year.
TMG’s revenue grew 11.2% to $240m from $216.1m in the first half of 2020 because of the higher patient with the easing of COVID-19 restrictions. It also provided support to governments in Singapore and in Malaysia with their COVID-19 vaccinations aside from its core services of obstetrics, gynecology, and pediatrics.
Revenue from the hospital services grew 4%, whilst specialized services increased 23.9%, it said, adding that cost-saving measures and COVID-19 related grants and rebates from the Singapore government contributed to a firmer profit.
Its operating expenses, meanwhile, were lower at $61.2m due to the absence of one-off non-cash impairment of $93.4m recorded in 2020 on TMG’s 9.23-hectare freehold land located in the Iskandar Development Region in Johor Bahru, Malaysia.
“Singapore is our key market accounting for nearly three-quarters of our revenue. The gradual reopening of the economy has been helpful particularly for non-critical services which were adversely affected last year as parents postponed treatments due to the pandemic,” Group Executive Director and CEO Wong Chiang Yin said.
“Moving forward, management is cautiously optimistic of prospects in Southeast Asia where growing affluence and demographic factors will drive demand for private healthcare. Our healthy cash position will provide a strong buttress as we invest in our core services while leveraging on technology to make healthcare as accessible as possible to patients in the region,” Wong added.
The CEO also said TMG will look for overseas expansion, noting that the construction of its 400-bed new wing at Thomson Hospital Kota Damansara in Malaysia has been completed and has obtained the Certificate of Completion and Compliance. It will comply with other regulatory requirements before starting operation around end-2021.