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• Revenue Growth: 8.1% increase during the period.

• Hospitals EBITDA: Up 10.2%.

• Normalized Earnings Per Share: Increased by 9.1%.

• Interim Dividend: Up 10.5% to ZAR0.21 per share.

• Occupancy Rate: Improved to 68.6%, targeting 70%.

• PPD Growth: 2% increase.

• ICU Beds Added: 20 new beds, with 62 more expected in the second half.

• Net Profit on Disposal: Estimated at approximately ZAR2.8 billion.

• Return on Capital Employed: 17.5%.

• Free Cash Flow: ZAR560 million.

• Net Debt to EBITDA: 0.65.

• Complementary Services Revenue Growth: Like-for-like increase of 7.3%.

• Head Office Cost Growth: 1.9%, including IT costs.

• Doctor Recruitment: 71 new doctors recruited during the period.

• Warning! GuruFocus has detected 7 Warning Signs with LTGHY.

Release Date: May 22, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Life Healthcare Group Holdings Ltd (LTGHY) reported an overall revenue growth of 8.1% during a challenging period.

• The company's hospitals EBITDA increased by 10.2%, indicating strong operational performance.

• Normalized earnings per share rose by 9.1%, reflecting improved profitability.

• An interim dividend was declared, up 10.5% to ZAR0.21 per share, continuing positive cash returns to shareholders.

• The company successfully added 20 ICU beds and plans to add another 62 beds in the second half, demonstrating expansion efforts.

Negative Points

• Life Nkanyisa faced contractual challenges, resulting in the loss of some contracts.

• The company had to recognize liabilities of ZAR2.9 billion related to the Life Molecular Imaging transaction before realizing profits.

• The incentive charge increased from ZAR128 million to ZAR182 million, impacting comparability with the previous year.

• Despite improvements, the occupancy rate of 68.3% is still short of the targeted 70%.

• The healthcare services segment experienced a loss of contracts, affecting revenue growth in that area.

Q & A Highlights

Q: What is the estimation for the incentive charge in the second half of the year? A: Pieter Van Der Westhuizen, CFO, stated that the incentive charge for the second half will be similar to the charge in the first half. The charge in the second half of last year was also similar to this half.

Q: Are there any further questions from the webcast? A: Adam Pyle, Chief Strategy & Growth Officer, mentioned that the remaining questions refer back to the ones already answered, and no new questions have been received.

Q: Are there any questions from the telephone lines? A: The Operator confirmed that there were no questions from the telephone lines.