Lippo Village, Tangerang, Indonesia
Tuesday, July 31, 2018
PT Siloam International Hospitals Tbk (“Siloam”) today announced financial results for the six months ended June 30, 2018, where Siloam recorded Gross Operating Revenue (“GOR”) of Rp 2.8 trillion, up 13.5% yoy.
The GOR of 8 mature hospitals were up by 7.7% yoy to Rp 1,427.5 billion from Rp 1,325.6 billion, contributing 32.0% to the GOR growth. The 11 developing hospitals’ GOR were up by 8.3% yoy to Rp 909.3 billion from Rp 839.3 billion, representing 21.9% of the GOR growth. The 10 new hospitals opened in 2017 and 2018 booked Rp 134.2 billion GOR, up 481.5% yoy from Rp 23.1 billion, contributing 34.8% to the GOR growth. BPJS Kesehatan contribution to the GOR is 27.1%, higher compared to 26.0% contribution in 1H 2017.
Net Operating Revenue (“NOR”) grew to Rp 2,106.8 billion, up by 12.2% yoy, while Gross Profit amounted to Rp 868.7 billion, up by 12.9% yoy. Earnings Before Interest, Tax, Depreciation and Amortization (“EBITDA”) up by 3.4% yoy to Rp 331.0 billion. Net Profit were recorded at Rp -25.1 billion, down 193.3% yoy due to the loss of the 10 new hospitals opened in 2017 and 2018 amounted to Rp 125.5 billion. These 10 hospitals are in ramp-up stage and will be profitable as their revenue grow.
On volume, Out-patient (“OPD”) visits grew by 13.2% yoy, while In-patient (“IPD”) admissions grew by 14.6% yoy. Bed Occupancy Rate (”BOR”) was recorded at 53.0% with 495 additional operational beds yoy, of which 354 beds were from the 7 new hospitals opened after 1H 2017. On comparable hospital basis, where patient volume from the 7 new hospitals opened after 1H 2017 is excluded, OPD visits grew by 7.3% yoy and IPD admissions grew by 8.5% yoy. BPJS Kesehatan contribution to the total volume is 32.6%, higher compared to 30.6% contribution in 1H 2017.
Siloam Hospitals Jember (“SHJR”) in East Java which was opened in April 2018 has served over 440 OPD visits and 60 IPD admissions with 40 operational beds. The 323-bed capacity hospital is in the process of registering the hospital to accept BPJS Kesehatan patients.
Ahead of the 2018 Asian Games, which will start on August 18, 2018, Siloam opened an Emergency Response Center at Jakabaring Sport City, Palembang, South Sumatera. Siloam Emergency Response Center is located at the heart of the 2018 Asian Games venue and is supported by experienced doctors and nurses in emergency care. The center will provide round the clock care for athletes, supporting teams and visitors during 2018 Asian Games.
Ketut Budi Wijaya, President Director of Siloam stated, "We are glad that we are able to improve our GOR and EBITDA growth rate with 13.5% and 3.4% growth yoy from 12.4% and -1.9% in Q1 2018, even with the Ramadhan holiday in the second quarter. We believe this encouraging trend will continue in the second half of the year. On the other hand, we are also delighted to be able to show our support for 2018 Asian Games by opening Siloam Emergency Response Center at Jakabaring Sport City. It is our duty as healthcare provider to contribute to the success our country as the host of this continental multi-sport event by providing international quality healthcare services for the athletes, supporting teams and the expected 5 million visitors.”
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 33 hospitals in 24 cities and 16 clinics in 8 cities throughout the country receiving more than 2 million visits & admissions and carrying out more than 55,300 surgeries every year. The 6,800 beds capacities are supported by about 2,700 specialists and general practitioners as well as over 10,000 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 5.4 trillion or USD 375.9 million as of July 30, 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.