Lippo Village, Tangerang, Indonesia
Thursday, March 8, 2018
PT Siloam International Hospitals Tbk (“Siloam”) today announced financial results for the year ended December 31, 2017. In the face of challenging market conditions, Siloam reported record Gross Operating Revenue (“GOR”) of Rp 5.8 trillion, up 13.2% yoy.
The GOR of 6 mature hospitals were up by 7.9% yoy to Rp 2.6 trillion from Rp 2.4 trillion, contributing 28.5% to the GOR growth. The 10 developing hospitals’ GOR were up by 10.6% yoy to Rp 2.3 trillion from Rp 2.1 trillion, representing 32.0% of the GOR growth. The 8 new hospitals opened in 2017 booked Rp 131.7 billion GOR, contributing 19.4% to the GOR growth.
Siloam’s Net Operating Revenue (“NOR”) grew to Rp 4.0 trillion, up by 6.9% yoy. Gross Profit amounted to Rp 2,4 trillion, up by 6.3% yoy, while Earnings Before Interest, Tax, Depreciation and Amortization (“EBITDA”) grew by 8.8% yoy to Rp 733.0 billion. Net Profit amounted to Rp 93.6 billion, up by 8.9% yoy.
In spite of the weak volume in the first half of the year, Siloam manage to record modest volume growth in 2017. Out-patient (“OPD”) visits grew by 16.7% yoy, 18.2% yoy growth in Q4. In-patient (“IPD”) admissions grew by 7.7% yoy, 13.3% yoy growth in Q4. Additionally, Bed Occupancy Rate (”BOR”) was recorded at 53.2% with 547 additional operational beds yoy, of which 434 beds were from the 8 new hospitals opened in 2017. On comparable hospital basis, where patient volume from the 8 new hospitals are excluded, OPD visits grew by 12.3% yoy, 10.7% yoy growth in Q4. IPD admissions grew by 1.5% yoy, 2.1% yoy growth in Q4. While BOR is recorded at 57.8% with 113 additional operational beds.
At the end of 2017, Siloam manages 31 hospitals, 8 of which started operation in the first 9 months of the year. During the year, Siloam Hospitals Denpasar successfully obtained Joint Commission International (“JCI”) accreditation following the footstep of Siloam Hospitals Lippo Village and Siloam Hospitals Kebon Jeruk. Siloam Hospitals Lippo Village was also re-accredited by JCI for the third time.
Siloam continues to support BPJS Kesehatan by registering additional 5 hospitals to serve BPJS Kesehatan patients in Asri, Cirebon, Hosana Medica, Palembang and Sentosa, bringing the total of registered hospitals to 21. Currently, BPJS Kesehatan contributes 27.1% to GOR and 32.2% to volume (34.9% to OPD visits and 45.9% to IPD admissions).
Ketut Budi Wijaya, President Director of Siloam stated, "The year 2017 is marked with several encouraging developments especially in the implementation of our expansion which linked to Siloam’s vision to provide healthcare to all corners of Indonesia and achieve nationwide economies of scale. During the year, we opened 8 new hospitals, of which 4 were acquired. With 31 operational hospitals by the end of 2017, the network of Siloam covers 22 cities and 16 provinces across the country that enables us to reach millions of people who can benefit from affordable international quality healthcare services. 8 new hospitals opened in a year is the most number of hospitals that we open in a year since we went into expansion phase in 2011. At this rate and with the fund raised from our second Rights Issue, we are on the right track to achieve 50 hospitals by the end of 2019. Going forward, together with our strategic investor, CVC Capital Partners, we are working very hard to improve the efficiency of our operation that leads to improvement in our service quality and profitability.”
Siloam is a subsidiary of PT Lippo Karawaci Tbk (“LPKR”), the largest listed property company in Indonesia by total assets and revenues, anchored by a large land bank and solid recurring income base. LPKR's businesses comprises of Residential/Township, Retail Malls, Hospitals, Hotels and Asset Management.
Siloam now operates 32 hospitals in 23 cities throughout the country receiving more than 2 million visits & admissions and carrying out more than 55,300 surgeries every year. The 6,500 beds capacities are supported by about 2,700 specialists and general practitioners as well as over 9,800 nurses and support staff. It also manages the first JCI accredited hospital in Indonesia and a repeat winner of “Frost & Sullivan, Indonesia’s Healthcare Service Provider of the Year”. Siloam is listed on the Indonesian Stock Exchange under the ticker name “SILO” and a market capitalization of Rp 13.2 trillion or USD 956.2 million as of March 6, 2018.
For more information, please contact:
Anastasia Trivena Haliem
Investor Relations Manager
Siloam Hospitals Group
This press release has been prepared by PT Siloam International Hospitals Tbk (“Siloam”) and is circulated for the purpose of general information only. It is not intended for any specific person or purpose and does not constitute a recommendation regarding the securities of Siloam. No warranty (expressed or implied) is made to the accuracy or completeness of the information. All opinions and estimations included in this release constitute our judgment as of this date and are subject to change without prior notice. Siloam disclaims any responsibility or liability whatsoever arising which may be brought against or suffered by any person as a result of reliance upon the whole or any part of the contents of this press release and neither Siloam nor any of its affiliated companies and their respective employees and agents accepts liability for any errors, omissions, negligent or 3 otherwise, in this press release and any inaccuracy herein or omission here from which might otherwise arise.
Forward-Looking Statements. Certain statements in this release are or may be forward- looking statements. These statements typically contain words such as "will", "expects" and "anticipates" and words of similar import. By their nature, forward looking statements involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this release. Factors that could cause actual results to differ include, but are not limited to, economic, social and political conditions in Indonesia; the state of the healthcare industry in Indonesia; prevailing market conditions; increases in regulatory burdens in Indonesia, including environmental regulations and compliance costs; fluctuations in foreign currency exchange rates; interest rate trends, cost of capital and capital availability; the anticipated demand and selling prices for our healthcare and related capital expenditures and investments; the cost of construction; availability of healthcare; competition from other companies and venues; shifts in customer demands; changes in operation expenses, including employee wages, benefits and training, governmental and public policy changes; our ability to be and remain competitive; our financial condition, business strategy as well as the plans and objectives of our management for future operations; generation of future receivables; and environmental compliance and remediation. Should one or more of these uncertainties or risks, among others, materialize, actual results may vary materially from those estimated, anticipated or projected. Specifically, but without limitation, capital costs could increase, projects could be delayed and anticipated improvements in production, capacity or performance might not be fully realized. Although we believe that the expectations of our management as reflected by such forward-looking statements are reasonable based on information currently available to us, no assurances can be given that such expectations will prove to have been correct. You should not unduly rely on such statements. In any event, these statements speak only as of the date hereof, and we undertake no obligation to update or revise any of them, whether as a result of new information, future events or otherwise.