Second quarter
- Revenue amounted to €596.7m (€509.4m), an increase of 17.1% with an organic growth of 13.9%.
- Operating profit (EBIT) was €41.7m (€21.3m), an increase of 96.5% representing an operating margin of 7.0% (4.2%).
- Net profit more than tripled to €18.0m (€5.9m), which represents a margin of 3.0% (1.2%).
- EBITDA was €96.2m (€70.6m), an increase of 36.3%. EBITDA margin was 16.1% (13.8%).
- EBITDAaL amounted to €64.5m (€43.3m), an increase by 49.0%, corresponding to an EBITDAaL margin of 10.8% (8.5%).
- Net cash flow from operating activities was €57.3m (€47.4m).
- Basic/diluted earnings per share were €0.127 (€0.042).
First half
- Revenue amounted to €1,174.8m (€1,008.2m), an increase of 16.5% with an organic growth of 14.0%.
- Operating profit (EBIT) was €77.7m (€40.3m), an increase of 92.8% representing an operating margin of 6.6% (4.0%).
- Net profit nearly tripled to €36.8m (€12.4m), which represents a margin of 3.1% (1.2%).
- EBITDA was €182.7m (€137.8m), an increase of 32.6%. EBITDA margin was 15.6% (13.7%).
- EBITDAaL amounted to €120.8m (€83.9m), an increase by 43.9%, corresponding to an EBITDAaL margin of 10.3% (8.3%).
- Net cash flow from operating activities was €144.8m (€125.4m).
- Basic/diluted earnings per share were €0.261 (€0.084)/€0.260 (€0.084).
REVENUE AND EARNINGS
| € millions (€m) | Q2 2025 | Q2 2024 | Growth | 6M 2025 | 6M 2024 | Growth | LTM1) | FY 2024 |
| Revenue | 596.7 | 509.4 | 17% | 1,174.8 | 1,008.2 | 17% | 2,258.4 | 2,091.8 |
| Operating profit (EBIT) | 41.7 | 21.3 | 97% | 77.7 | 40.3 | 93% | 107.7 | 70.3 |
| Operating profit margin | 7.0% | 4.2% | 6.6% | 4.0% | 4.8% | 3.4% | ||
| Net profit | 18.0 | 5.9 | 203% | 36.8 | 12.4 | 197% | 39.0 | 14.6 |
| Net profit margin | 3.0% | 1.2% | 3.1% | 1.2% | 1.7% | 0.7% | ||
| Basic earnings per share, € | 0.127 | 0.042 | 202% | 0.261 | 0.084 | 211% | 0.289 | 0.112 |
| Diluted earnings per share, € | 0.127 | 0.042 | 202% | 0.260 | 0.084 | 210% | 0.289 | 0.112 |
| EBITDA | 96.2 | 70.6 | 36% | 182.7 | 137.8 | 33% | 329.8 | 284.9 |
| EBITDA margin | 16.1% | 13.8% | 15.6% | 13.7% | 14.6% | 13.6% | ||
| Adjusted EBITDA | 100.9 | 74.4 | 36% | 191.5 | 144.5 | 33% | 347.0 | 300.0 |
| Adjusted EBITDA margin | 16.9% | 14.6% | 16.3% | 14.3% | 15.4% | 14.3% | ||
| EBITDAaL | 64.5 | 43.3 | 49% | 120.8 | 83.9 | 44% | 209.9 | 173.0 |
| EBITDAaL margin | 10.8% | 8.5% | 10.3% | 8.3% | 9.3% | 8.3% | ||
| Adjusted EBITDAaL | 69.2 | 47.1 | 47% | 129.6 | 90.6 | 43% | 227.1 | 188.1 |
| Adjusted EBITDAaL margin | 11.6% | 9.2% | 11.0% | 9.0% | 10.1% | 9.0% | ||
| EBITA | 45.7 | 26.2 | 75% | 84.9 | 50.0 | 70% | 139.6 | 104.7 |
| EBITA margin | 7.7% | 5.1% | 7.2% | 5.0% | 6.2% | 5.0% |
Definition and reconciliation of alternative performance measures are available at www.medicover.com/financial-information.
1) LTM: last twelve months (1 July 2024 - 30 June 2025)
CEO Statement
It is a pleasure to present my first quarterly report as CEO. The consistent focus made over the past year to enhance efficiency levels are yielding results, and at the same time our units are progressively filling up capacity. We continue to see strong organic growth and overall margin expansion which is enabling strong operating cash flow over the quarter. Demand remains strong throughout the businesses, with our Polish operations making a particularly significant contribution, despite a temporary subdued member growth in the employer-paid business. Both divisions contributed well to the group's overall results.
Revenue for the quarter amounted to €596.7m (€509.4m), an increase of 17.1%, with organic growth at 13.9%.
Margin expansion continued in the quarter across all profit measures, operating profit (EBIT) was €41.7m (€21.3m), an increase of 96.5% representing an operating margin of 7.0% (4.2%). EBITDA increased by 36.3% to €96.2m (€70.6m), corresponding to a margin of 16.1% (13.8%). Adjusted EBITDA amounted to €100.9m (€74.4 m), a margin of 16.9% (14.6%).
Healthcare Services
Revenue grew by 17.5% to €414.3m (€352.6m), with an organic growth of 15.6%, with price representing approximately 8.7pp of this growth. EBITDA grew by 41.3% to €77.2m (€54.6m), a margin of 18.6% (15.5%).
As expected, the business in India returned to double digit revenue growth in local currency with the team strengthening our marketing activities that worked historically. We have seen good performance from the hospital business in Romania in the quarter. The Polaris hospital (Cluj) has become the biggest robotic hospital in Romania with the highest number of operations and is doing very well. We still have a drag, although improving from €-3.9m in Q1 to €-2.7m EBITDAaL loss in Q2, from the immature hospitals in India and the newest hospital in Romania.
The Polish businesses have contributed significantly to both revenue and profit, especially the ambulatory clinics and sports/wellness business and was supported by fertility services. In the quarter we acquired and consolidated CityFit, a leading operator of fitness clubs. The integration is proceeding according to plan contributing to the performance.
The division ended the quarter with 1.5 million members compared to 1.8 million members by the end of last quarter. The development is explained by the transfer of the Hungarian insurance business completed in the quarter that led to a reduction of members with 284K. Member growth excluding these members was subdued and grew with 1.9%. FFS and other services grew by 15.1% and represented 51% of divisional revenue.
Diagnostic Services
Revenue amounted to €189.0m (€162.9m) in the quarter, an increase of 16.1%, with an organic growth of 9.9%, with price representing approximately 3.5pp of this growth. EBITDA amounted to €33.5m (€26.4m), an increase of 27.1%, a margin of 17.7% (16.2%).
All main FFS markets performed well and were further supported by the acquired local businesses from Synlab consolidated from 1 April, as well as Ukraine. Germany contributes to the revenue growth, however at a slower pace due to the price reform which we have navigated very well with operational efficiency initiatives. FFS grew by 22.0% and represented 68% of divisional revenue.
Solid volume growth, price and efficiency programmes in several markets contributed to the improved margins. The laboratory test volume increased by 20.9% to 41.9 million tests performed in the quarter (34.7 million), 9.4pp relates to the acquisition of the local Synlab businesses.
The Group's cash flow from operations reached €57.3m in the quarter, an increase by 20.5%.
At the end of the quarter loans payable net of cash and liquid short-term investments/adjusted EBITDAaL was 3.6x, exceeding the financial target due to the acquisition of CityFit and local businesses from Synlab. We expect this to be temporarily and anticipate that it will decrease in the second half of the year.
In summary, I am pleased to present such a robust report in the quarter, marked with strong growth and significantly enhanced profitability. Looking ahead we still have opportunity to grow with capacity to utilise in both divisions as well as positions to mature particularly in India and Romania.
I would like to end by thanking all of our people for caring for so many people and making such a positive impact to the societies we serve. Thank you for all you do.
John Stubbington
CEO
This report has not been subject to review by the Company's auditor. For full report, see attached pdf.
This interim report and other information about Medicover is available at medicover.com.
For further information, please contact:
Hanna Bjellquist, Head of Investor Relations
Phone: +46 70 303 32 72
E-mail: hanna.bjellquist@medicover.com
Conference call: A conference call for analysts and investors will be held today at 09.30 CEST. If you wish to participate via webcast, register here. Via the webcast you can ask written questions. If you wish to participate via teleconference, register here. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.
Address
Medicover AB (publ) (Org nr: 559073-9487)
P.O. Box 5283, SE-102 46 Stockholm
Visiting address: Riddargatan 12A, SE-114 35 Stockholm, Sweden
Phone: +46 8 400 17 600
Medicover is a leading international healthcare and diagnostic services company and was founded in 1995. Medicover operates a large number of ambulatory clinics, hospitals, specialty-care facilities, laboratories and blood-drawing points and the largest markets are Poland, Germany, Romania and India. In 2024, Medicover had revenue of €2,092 million and more than 47,000 employees. For more information, go to www.medicover.com
This information is information that Medicover AB (Publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-07-24 07:45 CEST.
