Six Months Through The Year, Medlife Reports 50% Revenue Growth

Six months through the year, medical service company Medlife reported a turnover of approximately 53 million lei, up by 50% year-on-year, and an operating profit of 11 million lei.

According to company representatives, service portfolio diversification and significant investments in advanced medical equipment led to an increase in the number of patients and the revenue per patient indicator. Investments made in the fee-for-service segment over the past few months also contributed to the company"s progress. Specifically, the company opened two Medlife hyper-clinics in Bucharest and Timişoara, a Medlife laboratory in Cluj and a physio-kinesiotherapy centre in Bucharest. Additionally, Medlife expanded the space dedicated to the maternal-foetal centre.

Mihai Marcu, Chairman of the Medlife Board of Directors, told BURSA that "while pursuing our objectives, the first half of the year gave us a chance to analyze opportunities to expand our business through several projects that have been planned and will develop at a faster pace in the second half of the year: the Medlife Obor Hyper-Clinic, the Osteoporosis Treatment Excellence Centre and the expansion of the functional capacity of the maternity ward of the Life Memorial Hospital by 500 square metres dedicated to luxury apartments."

The fee-for-service segment generated 65% of the company"s turnover, which rose by 48% compared to the corresponding period of 2008. The company remains the leading medical service provider on the corporate segment, after having acquired a number of customers previously serviced by competitors. The results posted for the first six months of the year demonstrate that Medlife achieved a 36% increase in turnover on the medical service subscriptions segment. On the laboratory services segment, Medlife reported the performance of 1.75 million laboratory tests in the first half of the year, up by 18% from the corresponding period of 2008.

Mihai Marcu noted that, although the private medical service market had been on an upward trend in the first half of the year, the growth rate had been slower than in the year-ago period. "The first half of the year was a propitious time for repositioning the private medical service market. On the one hand, we witnessed the decline of small players operating small- and medium-sized clinics and small private medical practices as many of them decided to sell their business in the absence of financing sources. On the other hand, large players capitalized on their expertise and managed to further consolidate their business, but are now much more cautious about developing new projects," Marcu said.

Medlife representatives believe that the Romanian market for private medical services could reach over 430 million EUR at the end of the year, approximately 35% more than in 2008.