MLP Saglik Hizmetleri (MPARK) Q2 2024 earnings summary

Executive summary

• Achieved strong top and bottom line growth in Q2 and H1 2024, driven by private medical insurance, disciplined cost management, and major acquisitions in Izmir and Ankara.

• Opened five new hospitals in 2024, expanding bed capacity by 10%.

• Leveraged AI in hospital management for cost efficiency and revenue maximization.

• Revenue for the six months ended June 30, 2024, reached TRY 16.33 billion, up from TRY 13.01 billion year-over-year.

• EBITDA for the period was TRY 4.21 billion, with adjusted EBITDA at TRY 3.58 billion, both showing year-over-year growth.

Financial highlights

• Revenue rose 26% year-over-year to TL 16,331m in H1 2024; Q2 revenue up 18.6% to TL 7,701m.

• EBITDA increased 37% year-over-year to TL 4,102m in H1 2024; Q2 EBITDA up 21.6% to TL 1,897m.

• Net profit attributable to equity holders was TRY 1.79 billion, compared to TRY 1.62 billion in the prior year period.

• Gross profit margin improved to 24.9% in H1 2024 from 24.1% in H1 2023.

• Earnings per share for the period was TRY 8.61, up from TRY 7.79 year-over-year.

Outlook and guidance

• Management expects continued growth supported by private medical insurance, top-up insurance, and medical tourism.

• Ongoing focus on cost efficiency and capacity optimization through AI-driven management.

• The company is assessing the impact of new tax regulations introduced in August 2024.

• Expansion continues with new hospital operations planned in Kosovo and rebranding of acquired hospitals.