Earnings call transcript: Bumrungrad Hospital sees Q1 2025 revenue decline

Bumrungrad Hospital Public Company Limited (BMGR) reported a decline in its Q1 2025 earnings, missing analysts’ expectations. The hospital’s earnings per share (EPS) came in at $2.18, falling short of the forecasted $2.36. The company also reported revenue of $6.12 billion, missing the anticipated $6.34 billion. Following these results, the stock price experienced a 2.96% drop in after-hours trading, moving from $169 to $164. According to InvestingPro data, the company’s current market capitalization stands at $703.46 million, with the stock trading near its 52-week low of $159.69.

Key Takeaways

• Q1 2025 revenue fell by 5.6%, with a notable decline in international patient revenue.
• Bumrungrad Hospital missed EPS forecasts, with a reported EPS of $2.18 versus an expected $2.36.
• The company’s stock price decreased by 2.96% in after-hours trading.
• The hospital continues to innovate, being the first in Thailand to install Siemens photon counting CT.

Company Performance

Bumrungrad Hospital experienced a challenging first quarter in 2025, with total revenue declining by 5.6% compared to the previous year. The hospital faced a significant drop in non-Thai patient revenue, which decreased by 9.7%, while Thai patient revenue saw a modest increase of 1.2%. The EBITDA margin stood at 37.7%, and the net profit margin was 27.9%, both reflecting a 12.6% decline. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 1.16 and holds more cash than debt on its balance sheet, suggesting resilience despite current challenges. For deeper insights into Bumrungrad’s financial health and 10+ additional ProTips, consider exploring InvestingPro’s comprehensive analysis.

Financial Highlights

• Total revenue: $208.01 million, down 5.6% year-over-year
• EBITDA: Declined by 12.6%
• Net profit: Declined by 12.6%
• EBITDA margin: 37.7%
• Net profit margin: 27.9%

Earnings vs. Forecast

Bumrungrad Hospital’s actual EPS of $2.18 fell short of the forecasted $2.36, marking a miss of approximately 7.6%. The revenue also underperformed expectations, coming in at $6.12 billion compared to the anticipated $6.34 billion. This miss reflects ongoing challenges in international patient revenue and market conditions.

Market Reaction

Following the earnings announcement, Bumrungrad Hospital’s stock price dropped by 2.96% in after-hours trading. The stock moved from $169 to $164, reflecting investor concerns over the earnings miss and revenue decline. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels. The stock remains within its 52-week range, which has seen a high of $284 and a low of $158.5, with a beta of 0.99 indicating movement largely in line with the broader market.

Outlook & Guidance

While the Q2 2025 guidance will be discussed in an upcoming livestream Q&A, the company is optimistic about improvements in visa processing for international patients and plans to engage more with the Saudi Arabian market. The hospital is also monitoring the post-earthquake situation in Myanmar, which may impact future revenue.

Executive Commentary

Kunil Sorrentino, Corporate Chief Strategy Officer, highlighted the hospital’s innovation: "We were the first hospital in all of Thailand to install and have operational a Siemens photon counting CT." CEO Atiraj Saruki emphasized the benefits of this technology: "This cutting-edge diagnostic innovation with AI technology improved early detection, precision, and safety."

Risks and Challenges

• Decline in international patient revenue, particularly from the Middle East and China.
• Impact of Ramadan on healthcare utilization.
• Ongoing challenges with visa processing for international patients.
• Potential disruptions from the earthquake in Myanmar.

Q&A

A detailed Q&A session is scheduled for April 30th, where investors can submit questions via email prior to the meeting. The session aims to address investor concerns and provide further insights into the company’s strategic plans.

Full transcript - Bumrungrad Hospital PCL (BH) Q1 2025:

Ashreya Sanatana, Investor Relations and Sustainability, Lunglat Hospital Public Company Limited: Welcome to the Analyst Presentation for the First Quarter twenty twenty five from Lunglat Hospital Public Company Limited. My name is Ashreya Sanatana, Investor Relations and Sustainability. For this time around, we are holding the analyst meeting in an online format. As usual, we will post our prerecording webcast of the analyst presentations on our website and then will be followed by the analyst meeting online Q and A sessions with management later on. So for this kind of online format, we will hold this analyst meeting in an online format for every first quarter and every third quarter of the year.

Then we will hold an in person analyst meeting at the hospital for every half year and for the full year result. For the presentation today, we have Kunil Sorrentino, Corporate Chief Strategy Officer, to talk about the key takeaway in the first quarter of twenty twenty five. Then we have Kun Atiraj Saruki, Pipat, Chief Executive Officer, to talk about the business update. Then we have Kun Arapan Vormuang, Chief Financial Officer, to talk about the financial highlight and the financial performance in the first quarter of twenty twenty five. Then lastly, we have Khoon Rajeev Rajan, Chief Business Development Officer, to give us an update on the business development performance.

Before we start with the presentation, in terms of the guidance, usually, the management will provide the guidance to the for the top line revenue growth year over year in a quarter by quarter basis. But please note that this time in this quarter, the management will provide the guidance for the second quarter of twenty twenty five during the analyst meeting Q and A session. So now let me hand over the presentation to Kunil Sorrentino.

Kunil Sorrentino, Corporate Chief Strategy Officer, Bomangrad Hospital Public Company Limited: Good morning, and welcome to Q1 twenty twenty five, Bomangrad Hospital Public Company Limited. Looking at the takeaways for the quarter, the most significant thing about Q1 was the fact that we experienced over 90% of the Ramadan days in Q1 given the fact that the Islamic calendar has advanced year after year. And this year, we have almost had almost the full impact of the Ramadan length of stay declines and revenue intensity declines. While we showed significant improvement in Qatar and UAE admissions, and I’ll go over that in detail. At the same time, we showed a greater length of stay decline of those Middle Eastern patients that were in our hospital for a long period of time but went back to their home country.

These were long stay patients that generated a lot of resource consumption and a lot and drove a lot of revenue intensity. Let me go through statistics for you so you’ll have a better understanding of the depth of the quarter. Insofar as The Middle East was concerned, we saw approximately 30% decline improvements. For Qatar, our admissions increased by eight point four percent and our visits, our outpatient visits increased by thirteen point four percent. This is this though is in correlation with the lower revenue intensity and lower length of stay, which drove down additional revenue changes.

Insofar as The UAE was concerned, we showed inpatient admissions of 12% growth for the quarter, although on an outpatient basis, it was because we had far few travelers coming back into the country during the Ramadan period. So it was contradiction in terms in a way because on the one hand, we had greater outpatient utilization and inpatient utilization for Qatar, greater inpatient utilization for UAE, but the revenue intensity and the length of stay was declined relative to other quarters. We will talk in detail next week at our livestream Q and A about Kuwait. We don’t really have much to say because the kingdom has been rather quiet and silent about their future plans as to where they’re going to be sending patients, if they’re going to be sending patients. Currently, as we understand it, almost all, with few exceptions, almost all of their patients are now being cared for in country, not totally, but almost all.

And so far as Indochina was concerned, Bangladesh, because it is an Islamic country, also was impacted we were also impacted by Ramadan. We saw significant declines in that utilization, but this was predicted in my guidance on revenue declines. Myanmar was a strong comeback country for us in Q1, not affected obviously by Ramadan. We showed almost a 20% growth from Myanmar on revenue. In addition, other winners, as I refer to them as The United States Of America, was driven almost down the middle between growth in revenue from U.

S. Expats working in Thailand as well as those coming from abroad. The China growth was mixed. We saw strong 7%, eight % China growth on revenue from Chinese expats in country and around the Thailand area. We saw a decline in international China visits mainly because the country of Thailand is experiencing decline in Chinese tourists from Mainland China as a result of safety concerns.

There was a question, as you may or may not know, about a Chinese national that was kidnapped out of Thailand into Myanmar, and that created a chilling effect on Chinese nationals coming into Thailand as tourists. And that continues to this day. Just recently, I was reading where for the entire period of 2025, the Chinese Mainland visitor tourist visitors into Thailand is down by almost two thirds. So those were the beneficial improvements, changes, increases, decreases with respect to revenue, outpatient admissions and OPD. As we look at the rest of the quarter, we were proud to report and Kunathi Rat will mention this in her comments later, we’re proud to report that for the fifth consecutive year, we have been awarded the best hospital in Thailand, and we improved from 130 ranking in the world up to 100 to the 100 best hospital in the world.

And we’re extremely proud of that. This helps us in many, many ways, especially with international tourists coming into Thailand, looking to just go to the best hospital and not knowing what that best hospital is. We promote this achievement because it’s well earned by our doctors and our staff. In addition, in the first quarter, we were the first hospital in all of Thailand to install and have operational a Siemens photon counting CT. Now what that means is higher resolution, faster throughput, being able to detect lung cancer through CT diagnosis, being angiograms being done on patients as opposed to just having them go through this machine.

It was a very, very significant expenditure, well over $100,000,000 plus, but it was worth it because our patients are benefiting from it. Finally, in the quarter, I have commented in the past about our relationship with Massachusetts General Brigham Hospital. We have developed a formal partnership agreement with them on a cancer institute collaboration that has passed Phase I. It’s now into Phase II, and we’re looking to finally and finalize, develop what our cancer institute will look like using and getting the benefit of expert advice from Mass General Brigham. As you may know, we are building our Bummergrod Cancer Institute.

It’s underway now. It’s coming out of the ground. It should be finished somewhere between eighteen months, fifteen to eighteen months from now. And that Cancer Institute will very much have a number of recommendations by Mass General Brigham as part of that clinical services design. Moving on now to the consolidated revenue by vertical.

In general, this is very indicative what you see here of the revenue proportionality by market segment. In Q1 twenty twenty four, internationalMiddle Eastern revenue was 54% of the total revenue for the company, dropping down to 51%. I commented earlier about 30% of that revenue decline overall came out of the Middle Eastern Q1 20 20 5 revenue change. The rest of it is pretty pro form a, 13,000,000, 13 million, 30 3 million, dollars 30 6 million picking up 36% in Q1 twenty twenty five as a difference between that 5154% of the prior year quarter. Looking at the overall revenue decline for the quarter within our guideline that we gave the last time we met, down 6.1.

As a sub piece of that, the international was down 11.6%. I’ve commented by country what that amounted to. Thai was up, expat was down mostly by revenue intensity. Volume was up, but revenue intensity was down for expat. Next slide.

Middle East, as I said earlier, was down 30% on revenue. Indochina, up 2.4%. That’s the negative of Bangladesh. The positive the high positive of Myanmar and others were 6.3%. These were the ups and the downs for the quarter.

If you look at Myanmar and you look at The United States, you look at Cambodia slightly down. United States was up significantly. Inside the numbers of Qatar and UAE, as we’ve spoken about, while average length of stay and revenue intensity was down, admissions and outpatient visits were up. Next slide. These are the consolidated numbers on EBITDA and NOPAT, Kun, Aarpon will talk about this in detail, slightly down on revenue from 40.7% to 37.7 on margin.

The difference on EBITDA as a result of Ramadan, twelve point six percent decline on EBITDA and on net profit, just about the same percentage decline. Very, very slight decline though on net profit for our margin. We did a very good job of containing costs and controlling costs, especially when you consider that our Middle Eastern revenue was down 30% for the quarter. Did a really good job on cost control. Next slide.

Moving now to our other one of several other business lines of principal importance was Vitalife. Vitalife had a very good quarter. When you look at it quarter to quarter, this is a business that continues to grow, continues to improve and continues to diversify in the longevity longevity leisure market space. EBITDA was close to the prior year, dollars 114,000,000 versus $117,000,000 Net profit, very close, 89,000,000 versus $91,000,000 Bob, in Q1 twenty twenty four. The EBITDA margin was slightly off because the revenue was slightly off as a result of Middle Eastern patients not being on our campus and not using this service.

Net profit was 3030.6% versus prior year, which was 34.1%. That is the highlight of the quarter. Insofar as guidance Q2 is concerned, we’ll be addressing that at our livestream Q and A. Please join us. That’s at ten on Wednesday, April 30.

And we’re happy to answer all questions at that time. Thank you.

Arapan Vormuang, Chief Financial Officer, Lunglat Hospital Public Company Limited: Good morning, Svetika. I’m Aurepant Vermon, Chief Financial I would like to report you all the financial headline and financial performance of first quarter twenty twenty five. In first quarter twenty twenty five, total revenue declined by 5.6%. EBITDA and net profit declined by 12.6%. The decline in revenue mainly came from non Typesaian revenue down by 9.7, offset with Typesaian revenue increased by 1.2%.

The EBITDA margin and net profit margin in this quarter was 37.727.9% respectively. I will walk you through more detail in financial performance section. The total revenue in first quarter twenty twenty five was CLP 208,006,000, declined from first quarter last year by 5.6%. The total revenue decline mainly came from the decrease in revenue from hospital operation, which declined by 6.1% when compared to first quarter last year. This was primarily due to 9.7% decrease in revenue from non Thai patients, highly correlated to the greater impact of Ramadan days experienced in first quarter twenty twenty five compared to first quarter twenty twenty four.

This decline was partially offset by 1.2 increase in revenue from In term of revenue contribution by nationality, in first quarter this year, the contribution of Thai was 36% increase from 33% in first quarter last year, while the contribution international was 64% in first quarter twenty twenty five, declined from 67% in first quarter twenty twenty four. This was mostly due to an increase in Thai patient revenue at 1.2%, while revenue from non Thai patient declined by 9.7%. In terms of revenue contribution by service, in first quarter this year, the revenue contribution of our patient service increased to 52% from 49% in first quarter twenty twenty four due to OPD revenue decreased by 4.8%, while IPD revenue decreased by 7.3% mainly due to lower length of stay. In term of revenue contribution by Beerthai, insurance contribution in first quarter twenty twenty five increased to 22% from 18% in the same period last year due to insurance revenue for first quarter twenty twenty five grew by 12%.

The government third party contribution in first quarter this year was 13%, down from 20% in first quarter twenty twenty four due to lower Middle East revenue. For self pay contribution increased to 64% in first quarter twenty twenty five from 61% in first quarter twenty twenty four. In terms of EBITDA and EBITDA margin, in first quarter this year, EBITDA was $338,002,000 decrease from same period last year by 12.6%. The decrease mainly due to total revenue decreased by 5.6% and offset with total expense slightly declined by 0.8%. EBITDA margin in this quarter was 37.7%.

In terms of net profit and net profit margin, in first quarter this year, profit was CLP $1,734,000,000, decreased from same period last year by 12.6%. The net profit decrease is in line with EBITDA decline. Net profit margin was 27.9%. In terms of level net ratio, net debt to EBITDA of first quarter this year was negative, 0.3 times due to less net debt and net debt to equity was also negative at 0.1 times due to less net debt as well. In terms of liability to asset, at the end of first quarter twenty twenty five, the percent liability to asset was dropped to 14%.

This is due to the higher net asset continuously. In terms of cash flow statement, at the end of first quarter twenty twenty five, total cash and investment increased to PHP16 billion from RMB12.9 billion in first quarter twenty twenty four. This came from the accumulated operating cash flow and cash collection from account receivable, especially Middle East account, offset with the dividend payment to the shareholder. In terms of increase in short term and long term investment, we have invested in multiple financial assets to capture the higher interest income yield in this year. These are our financial highlights and financial performance of first quarter twenty twenty five, Kar.

Thank you for your attention, Kar.

Atiraj Saruki, Chief Executive Officer, Bomangrad Hospital Public Company Limited: Deepa, so today, I would like to update about the hospital operation part. This is the fifth consecutive year receiving World’s Best Hospitals by Newsweek and Statista. And we ranked at 100, which is the best ranking in the past five years, coming up with from 130 last year. This is why we still remain the number one best hospital in Thailand. Bamura held a press conference titled Where Life Gets a Second Chance.

We reaffirm our leadership in heart, kidney transplant and liver transplant and corneal transplant services. With strong outcomes and high expertise, Bemura continues to be recognized by the Thyroid Cross Organ Donation Center as a trusted transplant center. We co host the fifty seventh International Endoscopic Spine Surgery Training with St. Anna Hospital Germany. We welcome over 120 surgeons from 10 countries.

This event reinforced our global reputation in minimally invasive spine surgery and strengthened our position as a regional training hub. Bamuran became the first hospital in Thailand to implement photon counting CT technology we introduced at the press conference on March. This cutting edge diagnostic innovation with AI technology improved early detection, precision and safety while significantly reducing radiation exposure. For our center of excellence performance in the first quarter twenty twenty five, due to Ramadan falling in March, while expand in March and April, this impact revenue in some center of excellence. However, we still continue focusing on strengthening differentiation and driving long term value through medical innovation and clinical outcomes.

Bamungad Hospital Foundation and Bamungad International Hospital are committed to promote public health and well-being. To support these initiatives, we organized the Bamurat Grace to Heal twenty twenty five. This is a charity fund run held on February 16 at the Tuchak Park. The event welcomed over 1,000 participants supported by 37 sponsors and we successfully raised a total donation around baht, a testament to the strong engagement from our staff and partners. Thank you.

Rajeev Rajan, Chief Business Development Officer, Bomangrad Hospital Public Company Limited: Swadhigarh, my name is Rajeev Rajan. I’m the Chief Business Development Officer. I would be presenting to you first quarter update of 2025. Net patient revenue by market segment overall, we had a negative 6.1% versus first quarter of last year. International, we had a deficit of 11.6%.

For the Thai segment, we saw growth of approximately 1.1%. And for the expat segment, a negative growth of 1.9%. Further to elaborate on the international segment, further to elaborate on the international revenue into three categories, Middle East, Indochina and others. Middle East, we saw a significant 30.6% approximately. This was majorly because of the early onset of Ramadan, which affected the health care utilization patterns across this region.

And also because of the early the Ramadan calendar moving every year a few days early, this year, most the key Ramadan period was in Q1 of this year, unlike last year, which was shared between Q1 and Q2. Further to have more details on The Middle East revenue by major markets, Qatar, we saw during the period of first quarter, our admissions increased 8.4% quarter over quarter. Our outpatient services visits rose by 13.4% approximately quarter over quarter. However, reductions in average length of stay and treatment intensity led to a close to around 24.4% quarter over quarter revenue decline. UAE, our inpatient admissions increased by approximately 12% same period versus last year, while OPD visits declined during this period, resulting in an overall quarter to quarter revenue decline of approximately 39.6%.

Again, this is mostly also because of the early onset of Ramadan and mostly over 90% of the Ramadan holidays being in Q1 of this year. For Kuwait, we do not have any specific update of or any other data as of now. We expect similar trends, which is anticipated because of the regional factors that was mentioned earlier as well. For Saudi Arabia, we have a we will be participating in the Thai festival, which is expected to be organized in the May. It will be held in Riyadh.

And we will be joining this event and representing our organization there. It is expected to be held over three days, having over 20,000 visitors who would be visiting this booth, local residents, Saudi nationals. This is organized by the Thai Ministry of Tourism, Health and External Affairs. We believe that this will influence future engagement and opportunities from this region. Moving to the Indochina segment, where we saw approximately 2.4% growth quarter over quarter, breaking it down into further in terms

Kunil Sorrentino, Corporate Chief Strategy Officer, Bomangrad Hospital Public Company Limited: of

Rajeev Rajan, Chief Business Development Officer, Bomangrad Hospital Public Company Limited: countries. Bangladesh, we experienced 16.8% quarter over quarter decline, primarily due to Ramadan and also another factor, which is approximately a 20% decrease in incoming travelers during the month of February and March. This is likely it is linked with the visa challenges. Thailand had introduced the new e payment e visa for Bangladeshis, which was brought into effect in January of twenty twenty five. But for the e visas, the payments had to be done physically in banks, which was creating a lot of backlogs.

But in March, they reintroduced ePayment link, which where they can make the payments online. And because of this, we can see some of the backlogs getting cleared. But because of the visa challenges and the backlogs and accessibility issue in terms of making payments, we could see slowing in process of visas, which was also a reason for drop in number of tourists coming into Thailand. So as per the numbers, 20% decrease in incoming travelers during February and March. However, the e payment is now in place and we expect these issues to improve moving forward.

For Cambodia, OPD visits grew approximately 22% quarter over quarter. However, revenue dropped about 7.1% due to lower intensity services. Myanmar, we noted a significant growth of around 19.8%, indicating a robust recovery from this market this quarter. We are closely monitoring the post earthquake situation. Our clinic in Yangon continues to operate normally today.

For other markets, China international patient revenue declined by 11.6% approximately. This highly correlates with the 24% approximately decrease in Chinese tourists arrival into Thailand. This is as reported by the Ministry of Tourism and Sports. However, revenue from Chinese expats for us grew by 8.5% quarter over quarter. And for international Chinese revenue coming in from Mainland, the decrease we expected because of it correlates with the tourism and the factors being the economic challenges and safety concerns that have contributed to the downturn in Chinese tourists into Thailand.

For U. S, we overall see an increase by approximately 17% quarter over quarter, reflecting a positive trend in the health care engagement from this market, which is a significant contributor to the 6.3% from the others vertical. And in the next slide, I have the international revenue by top 10 nationalities. As mentioned before, Qatar, we overall see a 24% drop in revenue, but we see a significant growth in terms of our admission numbers and also the OPD numbers. Myanmar, a strong growth by 19.8%.

U. S, a strong growth quarter over quarter by 17% approx. Cambodia, close to 7% in terms of the value. But in terms of OPD numbers, we see a growth quarter over quarter versus last year. Bangladesh for Ramadan and also for the Visa factor, but 16.8%.

UAE, a strong growth in terms of numbers for IPD, where we see a significant growth quarter over quarter for inpatient admissions, 39.6% mostly because of Ramadan and also from OPD footfalls coming down because of the Ramadan period. And China, Ethiopia and Oman. So overall for international, 11.6% deficit versus quarter last year. That’s the update from business development. Thank you.

Adika?

Ashreya Sanatana, Investor Relations and Sustainability, Lunglat Hospital Public Company Limited: Now we come to an end of the presentation. We will hold analyst meeting, Q and A sessions on Wednesday, thirty, April at ten a. M. To twelve p. M.

While management will be happy to answer to all of your questions that you may have. If you have any questions before the meeting, please feel free to send your questions through e mail at irbamonga dot com, and then we will address those questions during the meeting. So for today, thank you very much, and

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