Burjeel profits drop despite jump in patient footfall

Burjeel

Hospital operator Burjeel Holdings said net profits for the first six months of 2024 fell 25 percent year on year to AED169 million ($46 million), despite annual revenue rising 9 percent to AED2.4 billion.

Patient footfall increased to three million in the first six months, an increase of 11 percent in the second quarter. Abu Dhabi-based Burjeel did not give a growth figure for the first quarter.

The hospitals segment remained the primary revenue contributor, making up 88 percent of total group revenue in the first half of 2024. Bed occupancy rose to 64 percent, indicating room for further ramp-up within the existing infrastructure.

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The medical centres segment delivered robust revenue growth of 13 percent in the first six months of 2024, led by specialty care departments such as obstetrics, gynaecology, paediatrics, orthopaedics and cardiology.

Burjeel plans to clear the debts maturing in 2024 and 2025, leading to lower financing costs. In addition, the strong balance sheet will provide adequate financial flexibility to pursue growth opportunities.

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The company maintains a positive outlook for its mid- and long-term growth thanks to success in the UAE and Saudi Arabia.

The outlook is further supported by strong mid-term GDP expansion, rapid population growth and increasing demand for additional healthcare capacity.

Burjeel expects performance in the second half of 2024 to be driven by the rapid ramp-up of high-growth assets and fast growth in international and domestic patient footfall, CEO John Sunil said.