• Revenue raised by 36.3% to € 938.1 million
• Rise in net consolidated profit to € 45.6 million as expected
• Group continues to enjoy stable and sound financial structures
• 677,615 patients treated by Group hospitals during the first half
• Group staff of 30,785 as at 30 June 2006
• 45 hospitals with 14,620 beds/places as at 30 June 2006
• Forecast confirmation for full-year 2006: revenue of € 1.9 billion and net consolidated profit of € 93 million

With its interim report for the six months ended 30 June 2006 presented today, RHÖN-KLINIKUM Group reports a substantial rise in revenues. Compared with the first three months of 2006, revenues in the second quarter grew by € 30.5 million (+ 6.7%), reaching € 484.3 million. Compared with the first half of 2005, revenues recorded a sharp rise by € 249.8 million (+36.3%) to reach € 938.1 million (previous year € 688.3 million). The hospitals consolidated from the second half of 2005 contributed € 211.6 million to this growth in revenues, with Universitätsklinikum Gießen und Marburg GmbH accounting for € 172.7 million. Internal growth stood at € 37.9 million (+ 5.5%), with € 8.6 million attributable to the earnings-neutral change in accounting of, for example, the tax levied for training and education. 

As expected, margins declined as a result of the still inefficient structures of the newly consolidated hospitals compared with the Group’s long-standing facilities. “The measures taken to reap the full rationalisation potential of these hospitals are moving ahead as planned”, said Wolfgang Pföhler, chairman of the Board of Management of the listed hospital group headquartered in the Rhön.

Net consolidated profit for the second quarter of 2006 of € 22.9 million changed as expected only slightly compared with the figure of the first three months of 2006 (€ 22.7 million). Compared with the same period last year, net consolidated profit rose in the first six months of 2006 by € 1.2 million to € 45.6 million (previous year: € 44.4 million).

“The result in the first half of 2006 was burdened in particular by the loss at Universitätsklinikum Gießen und Marburg of € 5.6 million, but this was offset by improvements at the other hospitals”, said Dietmar Pawlik, who has been on the Board of Management since the beginning of 2006 with responsibility for Financing, Investor Relations and Controlling. 

Earnings per share for the first six months of 2006 stood at € 0.84 (previous year: € 0.81 adjusted / + 3.7%). 

In the first half of 2006 EBITDA* recorded an increase by € 4.9 million to € 103.6 million (previous year: € 98.7 million), and the operating result (EBIT) stood at € 71.1 million, up 3.3% versus its pre-year level of € 68.8 million. Earnings before tax (EBT) gained € 1.6 million (+ 2.6%) to reach € 62.5 million in the first half of 2006.

Of the investments made by the Group in the first six months of 2006 totalling € 276.3 million (previous year: € 199.1 million /+ 38.8%), € 209.7 million went for tangible fixed assets acquired on hospital takeovers and € 66.6 million for investment in the Group’s long-standing facilities (new and top-up investments as well as fixtures and equipment). € 78.1 million of this investment volume (previous year: € 74.5 million/ + 4.8%) was financed from the operating cash flow, € 83.7 million from an increase in net debt to banks to € 385.9 million (previous year: € 302.2 million) versus the last balance sheet date, as well as from the use of interest-free short- and long-term loan capital.

“Net debt to banks rose from € 301.0 million at the end of 2005 to € 385.9 million at the end of the first half of 2006 as a result of purchase price payments for the hospitals taken over. After the conclusion of a syndicated loan for a term of five years, long-term assets are now fully matched by equity capital and long-term liabilities”, explained Dietmar Pawlik. The equity ratio declined from 39.6% at the end of financial year 2005 to 34.6% as at 30 June 2006. This comes as a result of the Company’s buoyant growth and accompanying increase in assets and loan capital. “The Group continues to enjoy stable and sound financial structures”, Pawlik stated.

In the first six months of 2006 our hospitals treated 677,615 patients (previous year: 487,835 / + 189,780 / + 38.9%) on an inpatient, day-case and outpatient basis. Compared with the first half of the previous year, average per-case revenue rose by 8.6% in the inpatient area and by 11.0% in the outpatient area. The much higher per-case revenues at Universitätsklinikum Gießen und Marburg (€ 4,234 for inpatient cases and € 101 for outpatient cases) compared with the long-standing facilities brought an increase in average per-case revenue within the Group.

At 30 June 2006, the Group employed 30,785 persons (31 December 2005: 21,226), with 9,869 added by the newly consolidated facilities. The hospitals consolidated at the end of 2005 recorded a slight decline in staff numbers (-310). 

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* Earnings before depreciation/amortisation, interest and income tax

Currently we operate 45 hospitals at a total of 34 sites with 14,620 beds/places approved under federal state hospital requirement plans. The newly acquired hospitals add 2,660 beds to the Group, with 2,262 of these being contributed by the Gießen and Marburg sites. Due to the disputed prohibition of the takeover by the German Cartel Office, the figures do not include the district hospitals in Bad Neustadt/Saale and Mellrichstadt.

“The action filed with the Düsseldorf Court of Appeals for a decision on our appeal is ongoing. We expect a decision in the fourth quarter of 2006”, explained Wolfgang Pföhler.

Forecast confirmation for 2006:

“Revenues and net consolidated profit developed in line with our expectations“, said Wolfgang Pföhler. “For financial year 2006 we continue to expect revenues of € 1.9 billion and leave our target for net consolidated profit of € 93 million unchanged. We will offset the burden on earnings resulting from the takeover of Universitätsklinikum Gießen und Marburg with the improved results of our other facilities.”