Middle East Healthcare net profit halves as revenue drops

Saudi Arabia plans to invest $66 billion in healthcare infrastructure by 2030. (SPA)

• Revenue from unnamed key client declined
• Middle East Healthcare operates Saudi German Hospital brand

RIYADH: Saudi Arabia-listed Middle East Healthcare Co. said first-quarter net profit fell by almost half as revenue from a key client declined.
Net profit after zakat and tax slid 42.9 percent year on year to SR12.1 million ($3.2 million), the company, which operates the Saudi German Hospital brand, said in a filing to the Saudi stock exchange. Quarter-on-quarter profit fell 57.6 percent.
Profit per share was SR130,000 compared with SR230,000 a year earlier. Revenue was 4.1 percent lower year on year at SR418.4 million.
The company also cited continued losses at Dammam hospital of SR19.6 million for its lower net profit compared with the previous quarter.
Middle East Healthcare announced on April 1 that it would not pay a dividend for 2020 as it sought to invest in expansion and renovating its hospitals.