Medibank Private Limited (ASX: MPL), the leading private health insurance company in Australia, announced full year FY16 results.
Net profit swelled 46.4 percent to $417.6 million from $ 285.3 million in FY15 on the back of higher operating profits in the health insurance business. The numbers were however short of analysts’ forecasts, who were expecting profits to soar to $426 million.
- NPAT up 46.64 to $417.6 million from %285.3 million
- Operating profit on health insurance spiked to $510.7 million from $332.2 million
- Revenues from health insurance premium rose 4% to $6172.5 million
- Operating profit on complimentary services increased to $24.8 million, up 74.6%
- Increase in gross margins from 14.2% to 16.6%
- $5.1 billion in claims settled during the year
- Management expenses up by 1.2%
- Declares a final dividend of 6 cents/ share
Commenting on the results, Chief Executive Officer Craig Drummond said the robust results were an outcome of the company’s efforts to find efficient healthcare services. In addition, lower than expected growth in hospital utilisation rates across the industry also contributed to the company’s profits.
Drummond, who was formerly with the National Australia Bank as their Chief Financial Officer, joined Medibank in July this year.
Outlook for the company-
Revenue growth remained soft in the current financial year due to underperformance of the Medibank brand and a slowing market. The company expects premium growth to be steady in FY17 in-spite of slowing population growth. However, market share is expected to decline as frustration with the company continues amid a series of scandals and court action by the Australian Competition & Consumer Commission, last year.
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