Bumrungrad's net profit up 5% to US$30m in Q42018 amidst medical tourism boom

Middle Eastern arrivals are back on track.

Bumrungrad International Hospital reported a net profit of US$D30m (THB972m) in the fourth quarter of the year, marking a 5% year-on-year increase.

The growth was driven by higher international patient arrivals. A report by Maybank Kim Eng showed that Revenue from international patients grew 8% YoY in Q4, led by patients from the Middle East. Arrivals from the Middle East rose 16% year-on-year, while arrivals from Indochina rose 10% and visitors from Myanmar rose 9%.

Although UAE patient arrivals remained sluggish, revenue from Oman, Qatar and Kuwait went up. Revenue from Myanmar patients also grew again despite currency weakness.

“Its Middle East patient recovery continued from 3Q18. However, revenue from Chinese patients still declined 1% due to fewer referral patients for Vitallife. The numbers should gradually recover after BH started to market through a new agency. Excluding Vitallife, revenue from Chinese patients for traditional care increased 8% YoY in 2018,” the report stated.

On the domestic front, revenue from Thai patients dropped 5% YoY. There was no specific reason but management believes some patients may have shifted to cheaper hospitals for low-intensity cases. “BH’s strong international-patient revenue was offset by soft Thai-patient revenue,” the report said.

“Management expects patient volume to grow by 2% in FY19. In January, it had increased average fees by 5%. This suggests higher revenue per head going forward,” Maybank Kim Eng noted.

Photo credit: Y.I.M. Services