MLP (“MLP Care”) (BIST: MPARK), the leading private healthcare service provider in Turkey, today announces its financial results for the full year ended December 31, 2018.
(TL millon) 2018 2017 Change Q4 2018 Q4 2017 Change
Revenue 3,132 2,576 21.6% 880 703 25.3%
Comparable1 Revenue 3,045 2,576 18.2% 840 703 19.5%
Adj. EBITDA2 505 409 23.5% 152 126 20.3%
Adj. Margin (%) 16.1% 15.9% 25bps 17.3% 18.0% (71bps)
Comparable1 Adj.
EBITDA 530 409 29.7% 155 126 22.9%
Adj. Margin (%) 17.4% 15.9% 155bps 18.5% 18.0% 51bps
Adj. EBITDAR2 748 598 25.1% 215 176 22.2%
Adj. Margin (%) 23.9% 23.2% 68bps 24.4% 25.0% (62bps)
Net Profit/(Loss) (104) (133) (21.9%) 39 (60) (165.7%)
Net Profit/(Loss)
Normalized for
FX Losses (Including
Hedging Cost) 142 35 300.1% (1) 21 (102.5%)
1 Excluding the contribution from hospitals opened in 2018
2 Based on Reported EBITDA (Earnings Before Interest, Taxes, Depreciation, Amortization) /EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization, Rent Expenses) adjusted for one-time (income) / expenses, net and non-cash GAAP provision expenses
Financial Highlights
– In Q4 2018, revenues increased to TL880 million, up by 25.3% vs. Q4 2017. Revenues in 2018 were TL3,132 million, up by 21.6% vs. last year (2017: TL2,576 million). When revenues of managed hospitals were included, revenue growth in Q4 2018 was 29.1% and in 2018 was 27.7%.
– Adj. EBITDA increased by 20.3% in Q4 2018, bringing 2018 EBITDA growth to 23.5% vs. last year.
– When normalized for the negative EBITDA contribution from hospitals opened in 2018, comparable EBITDA growth was 22.9% in Q4 2018 and 29.7% in 2018.
– In 4Q 2018, a net profit of TL39 million was recorded due to strong operational performance, lower financial expenses and FX losses.
– A net loss of TL104 million was recorded in 2018 due to the TL245 million of FX losses from the hard currency denominated debt (2017: Net loss: TL133 million, FX losses: TL168 million). Net profit normalized for FX losses increased from TL35 million in 2017 to TL142 million in 2018.
– The net debt/Adj. EBITDA ratio declined to 2.5x at the end of 2018 compared to 3.4x a year ago.
Operating Highlights
– The ramp up of the new hospitals opened in 2018 is on track.
– Continued focus on maintaining strong growth in medical tourism (11% of in total revenues in 2018 vs. 7% last year).
– All of the FX denominated hospital building lease agreements converted to TL as of October 2018.
– Efficiency initiatives in place to improve margins.
