• Q1 - Q3 2005:
  • Revenue EUR 1,044.7 million / net consolidated profit EUR 67.1 million
  • Growth in revenues and net consolidated profit in line with expectations
• As at reporting date the Group has 41 hospitals with 12,222 beds/places at a total of 33 sites
• A total of 729,522 patients were treated in the Group’s facilities in the first nine months
• 21,200 persons were employed with the Group as at 30 September 2005

The key results for Q3 2005 published today by RHÖN-KLINIKUM AG, the listed hospital group with headquarters in the Rhön, confirmed the Group’s own forecasts.

In the third quarter of 2005 revenues reached EUR 356.4 million (Q3 2004: EUR 275.4 million); looking to the first 9 months of 2005, revenues totalled EUR 1,044.7 million (9M 2004: EUR 774.2 million). “The 34.9% rise in revenues in the first nine months of 2005 was mainly driven by the takeover of nine hospitals with a total of 2,625 beds and places as per 1 January 2005 and a further two hospitals with 396 beds and places as per 1 July 2005”, said Manfred Wiehl, CFO of RHÖN-KLINIKUM AG. “Structures in the newly consolidated hospitals are less efficient compared with our long-standing facilities,” Wiehl added. “As expected, this led to a decline in margins. However, these newly consolidated facilities generally possess considerable rationalisation potential”.

Despite the aforementioned restrictions, Q3 2005 posted impressive gains in key ratios, with EBITDA* rising by 11.8% to EUR 50.4 million (Q3 2004: EUR 45.1 million), EBIT** by 13.0% to EUR 35.7 million (Q3 2004: EUR 31.6 million) and net consolidated profit by 12.4% to EUR 22.7 million (Q3 2004: EUR 20.2 million). Looking at the 9M 2005 period, the key ratio EBITDA rose by 13.1% to EUR 149.1 million (9M 2004: EUR 131.8 million), EBIT by 14.0% to EUR 104.4 million (9M 2004: EUR 91.6 million) and net consolidated profit by 13.5% to EUR 67.1 million (9M 2004: EUR 59.1 million). As a result of scrip shares (bonus shares) issued in a ratio of 1:1 following the Annual General Meeting in July 2005, earnings per share can be compared with the pre-year figure only on the basis of the adjusted values. In the third quarter of 2005, EpS climbed to EUR 0.42 (Q3 2004: EUR 0.37); with reference to the first nine months EpS increased to EUR 1.23 (9M 2004: EUR1.09).

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*) EBITDA = operating result before interest, tax and depreciation/amortisation 

**) EBIT = operating result before interest and tax 

***) Earnings per share in EUR for 2004, adjusted to the number of shares after the capital increase from own funds and the merging of the preference and ordinary shares in 2005.

“Financial liabilities under purchase agreements concluded (whether currently in force or not) currently amount to EUR 374.1 million (after EUR 332.7 million at 31 December 2004). The Group continues to enjoy stable and sound financial structures", said Manfred Wiehl.

As at 30 September 2005 the RHÖN-KLINIKUM Group had 41 hospitals with 12,222 beds/places at a total of 33 sites. A total of 729,522 patients were treated in the Group’s facilities during the first nine months. At 30 September 2005, the Group employed 21,200 persons (at 31 December 2004: 14,977), with 6,314 added by the newly consolidated facilities. The hospitals consolidated at the end of 2004 witnessed a slight decline in staff numbers (-91). One statutory consequence of staff numbers exceeding the 20,000 mark is the expansion of the Supervisory Board with effect from 31 December 2005 to 20 members in accordance with German co-determination regulations; the re-election of the Supervisory Board members required in this connection has been carried out. 

“The decline in inpatient and day-cases continued, with average per-case revenue going from EUR 3,489 in the first nine months of 2004 to EUR 3,151 for the same period in 2005. This trend is being brought about by the changing mix of patients, with average per-case revenue being squeezed by the acquisition-driven rise in the number of general care hospitals generating lower per-case revenues. This trend is in line with the Group’s business policy, which is geared towards more sustained generalised healthcare delivery”, said Wolfgang Pföhler, chairman of the Board of Management of RHÖN-KLINIKUM AG.

“At the end of financial year 2005 we expect revenues to reach EUR 1.4 billion. Since remuneration negotiations are still under way for 2005 and the remuneration-relevant introductory phase of DRGs (case flat-rate remuneration of healthcare services) has yet to be completed, the resulting absence of forecasting certainty prevents us from revising our earnings estimate at this time. Consequently, our forecast announced at the July 2005 Annual General Meeting for EUR 86.0 million, with our shareholders participating at EUR 82.0 million, is left unchanged”, Pföhler explained. “We are steadfastly continuing our strategy of qualitative growth, refraining from negotiations whenever we have determined that the facility offered will not fit this corporate strategy".