MD Medical Group Investments Plc: MD Medical Group announces operating results for Q1 2023

 MD MEDICAL GROUP ANNOUNCES OPERATING RESULTS FOR Q1 2023

28 April 2023 – MD Medical Group Investments Plc (“MD Medical Group”, “MDMG”, “Group” or the “Company”; LSE and MOEX: MDMG), a leading Russian private healthcare provider, today announces its operating and unaudited financial results for the first quarter of 2023.

Key financial highlights for Q1 2023:

• Total revenue remained flat year-on-year (y-o-y) at RUB 6,221 million.
• Revenue of the Group’s regional hospitals grew by 14.4% y-o-y to RUB 1,669 million thanks to the strong operational performance of the medical cluster in Tyumen, the target utilisation rate achieved at IDK hospital in Samara, as well as the solid results of MD Group Lakhta hospital in St Petersburg.
• Revenue from out-patient clinics in other regions rose by 23.0% y-o-y to RUB 823 million as elective care and IVF recovered following the pandemic.
• Revenue of the Group’s hospitals in Moscow decreased by 11.0% y-o-y to RUB 3,084 million due to the strong base effect in Q1 2022 associated with a high utilisation rate at the Lapino-4 COVID treatment facility amid the pandemic.
• Revenue from out-patient clinics in Moscow and the Moscow Region rose by 5.1% y-o-y to RUB 641 million on the back of stronger demand for IVF following the pandemic.

Key operational highlights for Q1 2023:

• Total out-patient treatments increased by 7.8% y-o-y to 485,959, with the average ticket up 4.4% to RUB 5.4 thousand in Moscow and down 0.2% y-o-y to RUB 2.1 thousand in other regions.
• Total in-patient treatments went up by 1.6% y-o-y to 35,395, with the average ticket down 11.1% to RUB 90.3 thousand in Moscow and up 0.2% y-o-y to RUB 36.4 thousand in other regions.
• Total IVF cycles increased by 14.9% y-o-y to 4,140, with the average ticket increasing by 9.7% to RUB 287.1 thousand in Moscow and by 14.0% y-o-y to RUB 266.1 thousand in other regions.
• Total deliveries increased by 9.9% y-o-y to 2,207, with the average ticket decreasing by 6.6%   y-o-y to RUB 456.2 thousand in Moscow and rising by 12.1% y-o-y to RUB 192.4 thousand in other regions.

Key events during Q1 2023 and after the reporting period:

• Medical centre opened in the Moscow Region. On 13 January 2023, MD Medical Group opened a new out-patient medical centre, Mother & Child Mytishchi, with a capacity of up to 24,000 appointments per year. Total investments in the project stood at around RUB 23 million.
• Launching the procedure for changing the GDR programme depositary. On 10 April 2023, MD Medical Group launched the procedure for changing the depositary bank that administers the Company’s Global Depositary Receipts (GDR) programme. RCS Issuer Services S.A.R.L. was appointed as the new depositary bank. This process will take about 120 days[1].

Mark Kurtser, CEO at MDMG, said:

“We made a head start in 2023, demonstrating the Company’s ability to adjust to the changing market environment and delivering strong operating performance.

“In Q1 2023, we continued building up capabilities in our traditional areas. In particular, we ran 15% more IVF cycles y-o-y, with revenue growing by 29%.

“Despite a certain demographic decline nationwide, our growth in deliveries amounted to 10% in the first quarter, mainly driven by regional hospitals. As an example, MD Group Lakhta hospital in St Petersburg has already achieved a 30% utilisation rate in the first year of its core operations and is up for further growth. In Q1 2023, the regional growth of revenue in deliveries was 41%.

“It is also worthy of note that children’s healthcare keeps growing, with its revenue for the period up by 15%.

“Despite the expected decrease in COVID-19 diagnostic and treatment services, we see stable demand in non-core multidisciplinary segments, such as oncology, trauma care, and therapy. In Q1 2023, the Group’s Revenue growth, excluding the impact of COVID-19, was 11%.

“We keep developing our business and solidifying our positions in the existing markets. We have already started the construction of a nuclear medical centre at the Lapino medical cluster and a clinical hospital in Domodedovo, as well as multidisciplinary clinic in Moscow.

“Capitalising on the solid results of the reporting period, we continue increasing the utilisation rate at our existing hospitals and building new assets to support sustainable growth going forward.”

Key Highlights for Q1 2023