Release of an ad hoc announcement pursuant to Art. 53 KR
Fribourg, 15 September 2017
AEVIS VICTORIA – Net profit up by 168% to CHF 12.2 million in first six months of 2017
AEVIS VICTORIA SA (AEVIS VICTORIA) today published its Half-Year Report 2017. The revenues of AEVIS VICTORIA are earned through the operational activities of its consolidated subsidiaries and through dividends and capital gains of non-consolidated minority participations. In the first half of 2017, revenues from operations increased by 14.7% from CHF 293.5 million to CHF 336.6 million, due to the integration of Clinique Générale-Beaulieu in Geneva into Swiss Medical Network in late 2016. On the group level, EBITDA amounted to CHF 42.9 million, up slightly compared to 2016 (CHF 42.2 million). During the reporting period, AEVIS VICTORIA proceeded with two divestments, which resulted in a financial gain on investments of CHF 11.7 million. The 11.9% stake in LifeWatch AG was sold to Biotelemetry and a minority shareholding in Linde Holding Biel/Bienne AG was sold to the Hirslanden Group. A net profit of CHF 12.2 million was achieved for the period, in comparison to a net profit of CHF 4.5 million in the first half of 2016. The surge in profitability is expected to be sustained and will allow the company to propose an increased distribution to its shareholders at next year’s Annual Ordinary General Meeting.
Hospitals – Strong increase of the cash flow from operating activities
Total revenues of Swiss Medical Network reached CHF 301.7 million, up from CHF 259.2 million in the previous year, representing a growth of 16.4%. The increase was mainly due to the integration of Clinique Générale-Beaulieu in Geneva during the last quarter of 2016. Net revenues, excluding medical fees, grew by 17.4% from CHF 222.2 million last year to CHF 260.8 million in the reporting period. The hospital segment generated an EBITDAR (earnings before interest, taxes, depreciation, amortization, and and rent) of CHF 54.4 million, a plus of 8.1% compared to the CHF 50.3 million achieved in the first half of 2016. The cash flow from operating activities of Swiss Medical Network nearly doubled from CHF 8.9 million to CHF 17.5 million.
Hospitality – Average Room Rate increased by 5.0%
Net revenues for the five hotels (4 fully consolidated; management fees for the Palace in Lucerne) reached CHF 28.8 million, 7.9% more than in the previous year, based on a well-diversified customer portfolio and the addition of the Crans-Ambassador to the portfolio in December 2016. Additional customers came from the United States and China, while the number of guests coming from the Middle East and Switzerland remained nearly unchanged. The gross operating profit surged significantly as the Average Room Rate increased by 5.0% from CHF 340 to CHF 357. EBITDAR reached CHF 3.3 million, corresponding to an EBITDAR margin of 11.3%, compared to CHF 3.0 million and 11.2% a year ago. The first half-year is historically the weaker semester for Victoria-Jungfrau Collection due to seasonality.
Real Estate – Portfolio valued at CHF 1.15 billion
In the real estate segment, net income amounted to CHF 29.3 million (HY 2016: CHF 25.6 million), to which Swiss hospital-related real estate (mainly the hospital buildings used by Swiss Medical Network) contributed CHF 25.5 million and Swiss Hospitality Properties (the hotel buildings owned by the Group) contributed CHF 3.8 million. EBITDAR increased to CHF 24.8 million, corresponding to an EBITDAR margin of 84.7%. All properties were fully let at the end of the reporting period. The loan to value remains very low at 34.9% and the average interest on mortgages was 1.72% at the end of June 2017.
Considerable funds for continued growth
AEVIS VICTORIA has substantial funds available for further expansion projects and acquisitions. On top of a CHF 120 million credit line, the Annual General Meeting on 13 June 2017 approved the extension and increase of the authorised capital. The Board is thus authorised to increase the share capital by a nominal value of maximum CHF 37.8 million until 12 June 2019. This will allow AEVIS VICTORIA to make targeted acquisitions in the quarters ahead and support its existing portfolio companies. The participations of AEVIS VICTORIA harbour an important valorisation potential in the context of the actually ongoing consolidation process, both at national and international level.
AEVIS VICTORIA will pursue the optimisation of its operational subsidiaries, its acquisition and collaboration strategy in its expertise areas. Several projects are currently being evaluated. Based on an unchanged portfolio, AEVIS VICTORIA expects to realise a total revenue of more than CHF 700 million and an EBITDAR of more than CHF 100 million in 2017.
AEVIS VICTORIA SA’s full Half-Year Report 2017 can be downloaded via this link: http://www.aevis.com/aevis/pdf/AEVIS_HY_2017.pdf
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 VICTORIA′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 five luxury hotels in Switzerland, a hospitals and hospitality real estate division, 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). www.aevis.com.