RHÖN-KLINIKUM AG | 11/08/2007

Results for the first nine months of 2006 (already published) explained - Trend result for 2007 - Market position and future strategy - Forecast for 2008

At Rhön-Klinikum AG’s analyst conference held today in Frankfurt/Main, the Group’s results for the first nine months of 2007 (already published on 25 October) were once again briefly explained and the parameters underpinning the expected results discussed. For the first nine months of 2007 the Group reported revenues of € 1.5 billion (same period last year: € 1.4 billion / +5.9%). With reference to the third quarter, consolidated revenues rose compared with the same period in 2006 by 3.2% to reach € 505.6 million (previous year: € 489.8 million).  Net consolidated profit in the first nine months of 2007 (before minority interests in profit) reached € 86.9 million (previous year: € 70.1 million / + 24%). With reference to the first nine months of 2007, earnings per share rose to € 0.80 (previous year: € 0.65). The chairman of the Board of Management also confirmed the forecast already given for full-year 2007, with aggregate revenues expected to reach € 2 billion and net consolidated profit slightly exceeding € 110 million.  

Market position and future strategy

Regarding the acquisition strategy, Pföhler observes: “We are well prepared from a personnel, organisational and financial standpoint to admit further hospitals to our Group.” Given the worsening financial situation of public hospitals, the Group expects the privatisation of hospitals to once again be resorted to more frequently as an alternative. The need for public grants will mount as a result of the burdens from higher wages and changes in legislation. The gap between investment requirement and available funding continues to widen with many hospitals. The result is an investment policy that depends on the state of finances. Necessary structural investments are being put off in many places.

RHÖN-KLINIKUM Group announced that in 2008 it would further develop its strategic concept of “quality through standardisation and service volumes”.

The measures include greater use of technology and rationalisation of clinical processes, the creation of new professional perspectives for doctors as well as the establishment of medical service networks. As one example of the greater use of technology, Pföhler cited the WEB-based electronic patient file (WebEPA) that the Company will launch Group-wide.

Moreover, the Group will expand measures for ongoing and further-qualification training. To enhance medical efficiency within the Group’s hospital network, a centre for ongoing and further-qualification training at the University Hospital of Marburg is to be established. Junior physicians are to be given the possibility of completing their training as specialist physicians at the Group hospitals of RHÖN-KLINIKUM AG within the shortest possible time – as a rule five years. Pföhler also announced that the medical performance networks would be expanded across sectors and that the interaction between research and teaching at the university hospitals with the Group’s other facilities would be stepped up.

Forecast for 2008

For financial year 2008 the Board of Management have set the goal for revenues at slightly above € 2 billion. For 2008 the Board of Management puts net consolidated profit at € 123 million. Compared with 2007, that translates into an absolute rise in profit of € 12.5 million. Since the tax effects in 2007 and in 2008 – each at roughly € 10 million to € 11 million  – are about as high, Pföhler stated: “The expected growth in profit of 11.3 % will be generated in 2008 entirely from the operative business.”