Fribourg, 16 September 2016
AEVIS VICTORIA SA – Pre-announcement of half-year results 2016 – EBITDA surged by 27.9% to CHF 42.2 million
AEVIS VICTORIA SA (AEVIS VICTORIA) continued to expand its activities in the first half-year 2016. Total revenues grew by 1.2% to CHF 293.5 million (HY 2015: CHF 289.9 million) and net revenues (medical fees excluded) increased to CHF 256.1 million (HY 2015: CHF 254.9 million) in the first six months of 2016. At constant perimeter (without Palace Lucerne in 2015) revenue growth reached 3.6%. Consolidated EBITDA surged by 27.9% to CHF 42.2 million, corresponding to an EBITDA margin of 16.5%, up from CHF 12.9% a year ago. The normalised EBITDA, mainly factoring out seasonality effects in the hospitality segment, reached CHF 46.9 million, corresponding to a normalised EBITDA margin of 18.1%. As a result, the profit for the period increased from CHF 0.07 million in 2015 to CHF 4.2 million in the reporting period.
Swiss Medical Network reached a turnover of CHF 222.2 million, up from CHF 213.7 million in the previous year. This solid result was mainly based on an overall increase of the number of patients treated in the network’s hospitals while lower DRG and TARMED rates for the domestic activity remained a challenge. Medical tourism recovered and the turnover with foreign patients surged by around 10%, partially offsetting last year’s decline. In addition, the exploitation of synergies and efficiency gains also contributed to the improved EBITDAR of CHF 50.3 million, corresponding to an EBITDAR margin of 22.6%, in comparison to an EBITDAR of CHF 40.6 million and an EBITDAR margin of 19.0% a year ago. Swiss Medical Network has an outstanding track record in acquiring and restructuring private hospitals. This buy-and-build strategy paid off in the first half-year 2016. 14 out of 15 hospitals achieved a positive EBITDAR, as all of them are now in the optimisation phase of the business cycle. Privatklinik Lindberg is the only entity of the network that remains in the repositioning phase.
Seasonality effects had the usual impact on the performance of city hotels. Furthermore, tourism in Switzerland was also affected by the terrorist attacks in Europe as travellers became more cautious. With its solid and diversified guest portfolio, Victoria-Jungfrau Collection was able to absorb these influences and nearly match the results from the previous year in the consolidated hotels. Total turnover declined to CHF 26.7 million (HY 2015: CHF 32.6 million) but this decrease is mainly attributed to the deconsolidation of the Palace Lucerne (turnover of CHF 6.5 million in HY 2015) due to the new management contract structure in place since 1 January 2016. The number of overnight stays reached 34’145 (HY 2015: 45’265), while the occupancy rate reached 46.6% (HY 2015: 47.0%) also in light of the deconsolidation of Palace Lucerne. The average room rate was nearly unchanged and reached CHF 340 (HY 2015: CHF 344). Lower personnel expenses and efficiency gains contributed to an improved EBITDAR of CHF 3.0 million, representing an EBITDAR margin of 11.2%.
In the real estate segment, the market value of the 33 properties of Swiss Healthcare Properties reached CHF 775.8 million and the value of the hospitality properties amounted to CHF 164.0 million. All properties were fully let at the end of the reporting period. Swiss Healthcare Properties finalised one acquisition in the reporting period and bought an office building in Echandens in January 2016. The property offers rental space of 1’768 m2 with 53 parking spaces.
AEVIS VICTORIA is building up a fourth pillar of activities in the field of telemedicine. Two participations have been made so far. In January 2016, the acquisition of 40% of Medgate Group, the leading provider of telemedical services in Switzerland, was completed. Since July 2016, AEVIS VICTORIA holds a participation in listed LifeWatch AG, a leading developer and provider of medical solutions and remote diagnostic monitoring services in the digital health market. The shareholding in LifeWatch AG was 10.6% in August 2016.
For the entire business year 2016, AEVIS VICTORIA expects to realise a turnover of approximately CHF 600 million, based on an unchanged portfolio consolidated over a 12-month period. AEVIS VICTORIA continues to target an EBITDA margin of more than 20% in the mid-term, based on optimised processes and higher utilisation of its infrastructure. This will imply a free cash flow margin of around 10%, on which a pay-out ratio of 30% would be applied.
On 13 September 2016, AEVIS VICTORIA, through Swiss Medical Network, announced the acquisition of a 29.36% stake in Générale Beaulieu Holding SA, the company owning Clinique Générale-Beaulieu in Geneva, together with an offer to all remaining shareholders to acquire their shares until 17 October 2016. The offer values 100% of Générale Beaulieu Holding SA at a total Equity Value of CHF 187.5 million. The Board of Générale Beaulieu Holding SA is recommending to its shareholders to accept the offer and tender their shares to Swiss Medical Network.
A consolidation of Générale Beaulieu Holding SA in AEVIS VICTORIA will substantially increase the group’s turnover and will have positive effects on profitability and balance sheet ratios.
The full report will be published as scheduled on 27 September 2016.
An abstract of AEVIS VICTORIA SA’s Half-Year Report 2016 can be downloaded via this link:
For further information:
AEVIS VICTORIA SA Media and Investor Relations: c/o Dynamics Group, Zurich
Philippe R. Blangey, firstname.lastname@example.org, +41 (0) 43 268 32 35 or +41 (0) 79 785 46 32
Séverine Van der Schueren, email@example.com, +41 (0) 26 350 02 02
AEVIS VICTORIA SA – Investing for a better life
AEVIS VICTORIA SA invests in services to people, healthcare, hospitality, life sciences and lifestyle. AEVIS′s main shareholdings are Swiss Medical Network SA, the second largest group of private hospitals in Switzerland, Victoria-Jungfrau Collection AG, a luxury hotel group managing four luxury hotels in Switzerland, a hospitals and hospitality real estate division comprising 40 properties, Medgate, the leading telemedicine provider in Switzerland, and NESCENS SA, a brand dedicated to better aging. AEVIS is listed on the Swiss Reporting Standard of the SIX Swiss Exchange (AEVS.SW).