Raffles Medical Group's profit surge 6.6% to S$12.6m

Thanks to more patients coming in.

According to OCBC, Raffles Medical Group (RMG) reported its 3Q12 results this morning with revenue meeting our expectations but PATMI was slightly below due to higher-than-expected operating expenses.

Here's more from OCBC:

Revenue rose 13.9% YoY and 2.4% QoQ to S$78.7m. PATMI increased 6.6% YoY and 1.2% QoQ to S$12.6m. Growth during the quarter was driven by a higher patient load as RMG continued to expand the depth and breadth of its specialist services.

Both RMG’s core divisions contributed positively to its topline increase, with its Hospital Services and Healthcare Services segments growing 14.5% and 14.8% YoY, respectively.

For 9M12, revenue jumped 14.0% YoY to S$228.6m, forming 73.3% of our full-year estimates; while PATMI increased 8.0% to S$36.6m, or 68.0% of our FY12 forecast.

We note that the fourth quarter is typically RMG’s strongest quarter and we expect this trend to continue in FY12. RMG also maintained its strong financial position, improving its net cash position from S$63.9m in 2Q12 to S$68.7m in 3Q12.