Covid-19 weighs on Mediclinic’s Southern African revenue
The group’s offshore businesses have performed better as lockdowns eased
Private hospital group Mediclinic said Covid-19 weighed on the performance in its Southern African business in June, though its offshore operations performed better.
In an update the group said revenue in Southern Africa fell by about 12% year on year in June, with SA yet to reach its initial Covid-19 peak.
As lockdown measures are relaxed, the gradual re-introduction of elective procedures and outpatient activities led to improved operating performance, the group said, and Switzerland and the United Arab Emirates have passed the initial peak of the pandemic.
In June 2020, the operating performances at Hirslanden and Mediclinic Middle East, which represents more than two thirds of group revenue, were ahead of the previous year.
“The severity, duration and full impact of the Covid-19 pandemic and its economic aftermath on all businesses, including Mediclinic, continues to be uncertain,” the trading update reads.
There remains a risk to elective procedures and outpatient activity from a continuation or re-introduction of lockdowns and other measures in response to the pandemic, the group said, as well as the risks in terms of the availability of staff and a disruption in supply chains.
At the beginning of July, Mediclinic comprised 76 hospitals, eight sub-acute and specialised hospitals, 15 day-case clinics and 18 outpatient clinics.
Hirslanden operates 17 hospitals in Switzerland, while Mediclinic Southern Africa includes 52 hospitals, three of which are in Namibia. Mediclinic Middle East operates 7 hospitals.
In afternoon trade on Wednesday, Mediclinic’s share had surged 8.73% to R57.17, putting it on track for its best one-day performance in four months.
Update: July 22 2020
This article has been updated with additional financial information.
Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.
Please read our Comment Policy before commenting.