Siloam saw a continuing rise in patient volumes, in line with the company opening six new hospitals in Indonesia over the past two years. (B1 Photo/Vento Saudale)
Siloam Reports Q2 Profit Growth as Expansion Starts to Pay Off
AUGUST 01, 2019
Jakarta. Siloam International Hospitals, one of Indonesia's largest listed hospital operators, reported double-digit growth in the second quarter of 2019, thanks to a robust increase in patient numbers and payments from the national health insurance scheme.
Siloam booked net income of Rp 1.5 billion ($106,000) in the April-June period, compared with a Rp 26 billion net loss in the corresponding period last year, according to the company's financial report, released on Wednesday.
Net operating income increased 20 percent to Rp 1.25 trillion, while gross operating income rose 19 percent to Rp 1.67 trillion.
Income before interest, taxes, depreciation, and amortization surged 42 percent to Rp 211 billion, thanks to an improving EBITDA margin to 16.8 percent from 14.2 percent.
Siloam said the increase in margins can be attributed to revenue growth exceeding fixed-cost growth, in addition to good cost management.
"The company's strategy to increase existing assets, led by a professional management team, has begun to pay off," Siloam president director Ketut Budi Wijaya said in a statement.
Siloam saw a continuing rise in patient volumes, in line with the company opening six new hospitals in Indonesia over the past two years, according to its most recent presentation.
Inpatient visits increased 20 percent to 59,314, while outpatient visits rose 12.4 percent to 636,068. The company's hospitals also treated 87,838 medical emergencies in the second quarter, up 20 percent from the same period last year.
Corporate and insurance payees remained the biggest contributors to Siloam's revenue in the second quarter, accounting for close to 40 percent of the total.
Revenue from this group grew 24 percent year-on-year to Rp 661 billion in the second quarter – faster than any other payee group.
Patients paying from their own pockets accounted for Rp 659 billion of total revenue, which grew 16 percent from last year.
There was robust growth in the number of patients using the national health insurance scheme provided by the Social Security Administrator for Health (BPJS Kesehatan). Revenue from this group rose 14 percent to Rp 346 billion, the company said.
The Jakarta Globe is affiliated with Siloam International Hospitals through the Lippo Group.