Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn


Healthscope plunges after profit slump

Marnie Banger  |  24 Aug 2017Text size  Decrease  Increase  |  
Email to Friend

Page 1 of 1

SYDNEY - [AAP] Shares in private hospital operator Healthscope (ASX: HSO) have fallen to a record low after its full-year profit dropped 39 per cent to $110.9 million, affected by an impairment from the sale of its medical centres business and other costs.

Healthscope on Wednesday announced a 3.4 per cent lift in revenue to $2.37 billion in the year to June 30, but profit was hit by a $54.7 million impairment from the medical centres sale.

The company revealed last week it was divesting the centres to Fullerton Primary Care in order to focus on its core hospitals and pathology businesses.

Healthscope on Wednesday said $17.4 million in other expenses, including an impairment of assets at its Geelong Private Hospital and corporate restructuring, also hit the bottom line.

The company's biggest division—hospitals--grew operating earnings by 1.3 per cent to $359.4 million.

Healthscope chief executive Gordon Ballantyne said the division was hit by softer markets and higher operational costs, which in some cases grew faster than private health fund rebates.

Healthscope said it expects flat earnings growth in the 2017/18 financial year, as volatility and cost pressures in the Australian private hospital market continue.

Email to Friend
Market News and Views Sign up today and receive our free Morning Note e-newsletter, daily in your inbox.

The company's final dividend is an unfranked 3.5 cents per share, down from 3.9 cents per share last year.

Healthscope shares closed down 33.5 cents, or 15.3 per cent, at an all-time low of $1.855 on Wednesday.


* Net profit down 39pct to $110.9m

* Revenue up 3.4pct to $2.37bn

* Final dividend down 0.4 cents to 3.5 cents, unfranked


AAP logo image

© [2017] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

Email To Friend