EARNINGS UPDATE
Mediclinic plunges on weakness in Switzerland and UK
Shares in the private hospital group Mediclinic’s share price fell on Wednesday morning after it released a trading update
The share price of SA’s biggest private hospital group Mediclinic International nose-dived on Wednesday after the company warned of poor performances in Switzerland and the UK, with management describing the sector as experiencing unprecedented regulatory upheaval. The trading update, in which Mediclinic warned of an 8% earnings decline, sparked a 16.9% drop in its share price to R73.96. This is its biggest one-day fall on the JSE since at least February 2016, when its primary listing moved to London following its acquisition of Al Noor in the United Arab Emirates. Investors punished the company as they recently did with its rival Netcare, and pharmaceutical manufacturer Aspen Pharmacare, which saw their shares plummet on the back of disappointing news. In September Netcare shed R3.825bn of its value after it said its earnings for the year to September 30 would fall slightly compared with the year before, due to difficult trading conditions. And Aspen saw its shares take their bigge...
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