Medicover (MCOV) Q1 2025 earnings summary

Executive summary

• Revenue grew 15.9% year-over-year to €578.1m, with organic growth of 14.1%, and both Healthcare Services and Diagnostic Services delivered robust organic growth and margin expansion.

• Adjusted EBITDA margin expanded by 1.6pp to 15.7%, and EBIT margin grew by 2.4pp to 6.2%; EBITDA rose 28.7% to €86.5m.

• Annualised Q1 results exceeded 2025 public financial targets for revenue and adjusted EBITDA.

• Poland delivered exceptional performance, now accounting for 52% of revenue, while India experienced a temporary setback but returned to double-digit growth in April.

• Two strategic acquisitions closed in April—Synlab's CEE operations and CityFit fitness clubs—expected to be highly accretive and add over €80m in annualized revenue.

Financial highlights

• Revenue rose to €578.1m from €498.8m year-over-year; adjusted EBITDA increased to €90.6m (15.7% margin), and EBIT surged 88.7% to €36.0m (6.2% margin).

• EPS more than tripled to €0.134 from €0.041 year-over-year.

• Healthcare Services revenue surpassed €400m for the first time, up 18% (15% organic, 9% price-driven); Diagnostic Services revenue increased 11.7% to €182.2m, organic growth 11.8%.

• Net operating cash flow rose 11.6% to €87.5m; free recurring cash flow increased to €44.2m.

• Fee-for-service represented 56% of total revenue, with strong growth in privately paid business.

Outlook and guidance

• Confident in exceeding organic revenue and EBITDA targets for 2025, with continued strong performance and acquisitions expected to drive further growth and margin accretion.

• Growth in India expected to recover in Q2 after a soft Q1.

• Leverage expected to temporarily rise above 3.5x in Q2 due to acquisitions, but projected to fall to 3x or below by year-end.

• CapEx guidance for FY2025 remains at 5-6% of revenue.

• Adjusted EBITDA margin expected to remain above 15% for FY2025.