Medibank Private (MPL) H2 2024 earnings summary

Executive summary

• Underlying NPAT rose 14.1% to AUD 570.4 million, with group operating profit up 7.9% and Medibank Health segment profit up 36.7% to AUD 60.4 million, despite a competitive market and cost-of-living pressures.

• Customer focus delivered a record AUD 1.46 billion in COVID-related givebacks, premium increases below inflation and wage growth, and expanded health and well-being programs.

• Net resident policyholder growth was 0.7%, with strong non-resident growth of 25% and disciplined retention strategies.

• Strategic investments in primary care, virtual health, and partnerships are accelerating health system transition and supporting long-term growth.

• Maintained a strong capital position, supporting further investment in M&A and innovation in health services.

Financial highlights

• Health insurance operating profit up 6.3% to AUD 692.3 million; Medibank Health segment profit up 36.7% to AUD 60.4 million.

• Underlying net profit after tax increased 14.1% to AUD 570.4 million; net investment income up 31.5% to AUD 182.2 million.

• Group revenue increased 4.7% to AUD 8,175.8 million compared to FY23.

• Final fully franked ordinary dividend of AUD 0.094 per share, total FY dividend up 13.7% to AUD 0.166 per share (80.1% payout ratio).

• Reported EPS up 59.6% to 17.9 cents; underlying EPS up 14.1% to 20.7 cents.

Outlook and guidance

• Aiming to grow in line with the market in FY 2025, with volume growth in Medibank brand and market share growth targeted for FY 2026.

• Claims growth per policy unit expected at 2.7% in FY 2025, with AUD 10 million in targeted productivity savings.

• Medibank Health targeting average organic profit growth of 15%+ per annum (FY 2024–FY 2026) and AUD 100–250 million in M&A investment.

• Finalization of COVID-related customer givebacks expected in FY 2025.

• Full-year Myhealth consolidation in FY25 to support segment growth.