AFK Sistema : Medsi Group of Companies announces financial results for 2013

Medsi Group of Companies announces financial results for 2013

26 March 2014, Moscow, Russia. - The Medsi Group of Companies and its subsidiaries ("Medsi" or "the Group"), a leading national provider of medical and rehabilitation services in Moscow and other regions of Russia, has today published its unaudited consolidated US GAAP financial results for the year ending 31 December 2013.

MAIN FINANCIAL RESULTS

- Revenues totaled US$294.0 million, up 41.3% year-on-year

- OIBDA amounted to US$39.1 million, up 193.9% as compared to US$ 13.3 mln in 2012

- The OBIDA margin came to 13.3%, up 6.9 p.p. year-on-year

- The ratio of sales, general and administrative expenses (SG&A) to revenues was 14.8%, down 2.2 percentage points from 2012

- Net profit stood at US$42.3 million, compared with US$0.1 million in 2012

- The net cash position was US$129.4 million at the year-end 

MAIN OPERATING RESULTS

- Total floor space of the Group's facilities amounted to 249 thd. , m2,

- The number of visits totaled 6.013 million, up 20.8% year-on-year

- The number of services provided increased to 12.736 million, up 15.2% year-on-year

- The average check was US$48.7, up 16.8% year-on-year

- Revenues per m2 reached US$1,181.0, up 13.4% as compared to US$ 1,041.8 in 2012 

Commenting on the results, Medsi President Alexey Chupin said:

"In 2013, Medsi increased the top line and operating efficiency significantly. Group revenues rose by 41.3% due to the consolidation of additional assets and an increase in the number of visits and services provided. Driven by this, the OIBDA margin climbed to 13.3%, up from 6.4% in 2012.

In 2013, Medsi focused its efforts on integrating the new assets. In the first half of the year, we completed the consolidation of the Medical Center for the Mayor and Government of Moscow (MCMGM). By the end of the reporting period, all of the assets had been integrated in full, and Medsi now has another three hospitals, five clinics, including one children's facility, and three sanatoriums.

The consolidation of MCMGM has enabled Medsi to take its healthcare to the next level and provide the full spectrum of medical services. Over last year, we introduced a patient routing system: from clinic to diagnostic center and, if necessary, to hospital and sanatorium.

In late 2013, Medsi approved a new development strategy for 2014-17, which envisages expansion in the most promising segments and a large-scale investment program.

The strategy will focus on reassigning functions between the head office and operating assets, transforming the incentives system, and providing sales and marketing support. Cutting-edge technology and equipment will also be introduced.The new strategy is Medsi's response to changes in the environment, greater expectations among patients, the ongoing healthcare reforms in Russia, and the changing shape of our business following the integration of MCMGM. We believe that it will raise the quality of our services to a new level, enhance operating efficiency, and ensure that we remain competitive over the long term."

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